Anyone Who Presents a Check for Payment Warrants All EXCEPT

question 35

Multiple Choice

Anyone who presents a check for payment warrants all EXCEPT:

• A) he or she is a holder.
• B) he or she has no reason to believe the drawer is insolvent.
• C) he or she has no reason to believe the drawer's signature is forged.
• D) the check has not been altered.

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Definitions:

Indorses

A variant spelling of "endorses," meaning to sign the back of a check or document, transferring rights or expressing approval.

Unauthorized Indorsement

A signature placed on a negotiable instrument (like a check) without proper authority or consent, often leading to questions of validity and fraud.

Burden Of Loss

Refers to the responsibility to bear the financial impact of damage, loss, or destruction of property in legal or insurance contexts.

First Party

The entity or individual directly involved in a transaction or legal agreement, such as the buyer in a purchase agreement.