Which of the Following Is True of Warranty Liability as It

question 19

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 who accepts an instrument in good faith receives a presentment warranty from the person obtaining acceptance that the draft has not been altered.
• C) 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.
• D) All of these.

---

Definitions:

Attention

The act of focusing selectively on a piece of information, disregarding other perceivable information.

Outside Order Takers

Outside order takers are sales personnel who primarily accept orders from customers outside the company premises, often visiting customers in their locations to take orders without engaging in proactive selling.

Technical Programs

Educational courses or training programs focused on developing specialized skills or knowledge in specific technical fields.

Point-Of-Purchase Displays

Marketing materials or advertising placed near the product it is promoting, often located at the checkout area or other key points within a store to catch the consumer's eye.