Which of the Following Is True of Warranty Liability as It

question 26

Multiple Choice

Which of the following is true of warranty liability as it affects negotiable instruments?

• A) Warranty liability applies to any persons who transfer an instrument and receive consideration.
• B) A drawee of an unaccepted draft who pays in good faith receives a presentment warranty from the person obtaining payment and from all prior transferors of the draft.
• C) A drawee who accepts an instrument in good faith receives a presentment warranty from the person obtaining acceptance that the draft has not been altered.
• D) All of these statement are true of warranty liability.

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Definitions:

Discouraged

A feeling of losing confidence or enthusiasm for something.

Hopeless

A state of despair in which an individual perceives their situation as bleak or insurmountable, lacking optimism or solutions.

Role Model

An individual admired for their qualities or achievements and considered as an example to emulate.

Communication

The process of transmitting information, ideas, emotions, skills, and knowledge between two or more individuals through verbal, written, nonverbal, and digital means.