Which of the Following Is True of Warranty Liability as It

question 66

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.
• E) None of these.

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