If a Negotiable Instrument Is ____, the Transferee Takes the Instrument

question 519

Multiple Choice

If a negotiable instrument is ____, the transferee takes the instrument free of any of the transferor's contract obligations.

• A) transferred by assignment
• B) transferred by negotiation
• C) transferred by court
• D) assigned
• E) delegated

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Definitions:

Legal Right

A legal right is an entitlement that is protected by law, giving the holder the ability to perform or refrain from certain actions.

Collective Bargaining

The process of negotiation between employers and a group of employees aimed at reaching agreements that regulate working conditions.

Public Employees

Individuals who work for government bodies at the federal, state, or local level, contributing to the administration and implementation of public services and policies.

Private-sector Counterparts

Refers to organizations and businesses in the non-public sector that correspond or are equivalent to entities in the public sector.