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.

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Definitions:

Stimuli

External agents or occurrences that provoke a reaction or response from a biological organism.

Asthmatics

are individuals who suffer from asthma, a chronic respiratory condition characterized by episodes of wheezing, coughing, and difficulty breathing.

Cannon-Bard Theory

A theory of emotion that argues that physiological arousal and emotional experience occur simultaneously, yet independently.

Physiological Symptoms

Observable body responses to various stimuli, indicating a reaction, such as increased heart rate, sweating, or a rash, in relation to emotions, disease processes, or environmental factors.