Alice Bought a Boat from Brian

question 50

Multiple Choice

Alice bought a boat from Brian.The purchase price was $250 000.On February 1, she paid that price by giving him a bill of exchange drawn on her account at the Bank of Kenora.The bill was due on December 31 and it was payable to Brian.On March 1, Brian negotiated the bill to Carla.On April 1, the Bank of Kenora accepted the bill at Carla's request.On May 1, Carla placed a general endorsement on the bill and negotiated it to Dave.On June 1, Dave negotiated the bill to Edna.Every attempt at negotiation was successful.Which of the following statements is TRUE?

• A)Brian could not have endorsed the bill.
• B)A situation may arise in which Carla is entitled to recover $250 000 from Brian.
• C)Although she is not entitled to receive more than $250 000 in total, Edna has acquired rights against Alice, Brian, and Carla, but not the Bank of Kenora.
• D)Dave must have added an accommodation endorsement.
• E)The Bank of Kenora has the secondary liability to pay Edna.

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