Liability in Which a Person Cannot Be Held Contractually Liable

question 38

Multiple Choice

Liability in which a person cannot be held contractually liable on a negotiable instrument unless his or her signature appears on the instrument is referred to as ________.

• A) warranty liability
• B) unqualified liability
• C) contract liability
• D) accommodation

---

Definitions:

Double Coincidence of Wants

A condition in barter economies where two parties each hold an item the other wants, making it possible for an exchange to occur without a common medium of exchange.

Barter Situation

A trade system where goods or services are exchanged directly for other goods or services without the use of money as a medium of exchange.

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type.

Standard of Value

A base for comparison that allows the determination of the economic value of goods and services.