Liability on a Negotiable Instrument That Is Imposed on a Party

question 62

Multiple Choice

Liability on a negotiable instrument that is imposed on a party only when the party primarily liable on the instrument defaults and fails to pay the instrument when due is referred to as ________.

• A) secondary liability
• B) unqualified liability
• C) fringe liability
• D) warranty liability

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Definitions:

Tubercle

A small rounded projection or nodule, often part of a bone or organ, or referring to a lesion seen in tuberculosis.

Diaphysis

The central, tubular shaft of a long bone where the bone's main portion of strength and structure is located.

Female Pelvis

The bony structure at the lower part of the abdomen, which is wider and shallower than the male pelvis, adapted for childbirth.

Amputation

The surgical removal of a limb, part of a limb, or other body part.