Tom Indorsed a Check Made Payable to the Order of Tom

question 47

Multiple Choice

Tom indorsed a check made payable to the order of Tom Jones as follows: Pay Raymond Berry
/s/ Tom Jones
Raymond negotiated the check to his landlord for his rent. Raymond indorsed the check as follows:
Without Recourse
/s/ Raymond Berry
With regard to Tom's indorsement, which statement is correct?

• A)Tom has secondary contractual liability on the check as an indorser.
• B)Tom has no contractual liability on the check because he is the payee.
• C)Tom has primary contractual liability on the check as payee.
• D)Tom eliminated his liability as an indorser by the type of indorsement he used.