If a Negotiable Instrument Is Transferred by Negotiation, the Transferee

question 197

Multiple Choice

If a negotiable instrument is transferred by negotiation, the transferee takes the instrument:

• A) with all of the transferor's rights and responsibilities
• B) free of the transferor's responsibilities
• C) with the duties that have been assigned to the instrument by the bearer
• D) with the rights that have been assigned to the instrument by the holder in due course
• E) none of the other choices

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Definitions:

Bystander Theory

A legal theory suggesting a person or entity may be liable for injuries to a bystander caused by their failure to control or warn about hazards they are responsible for.

Warning Label

A label on a product that indicates potential hazards to consumers and outlines measures to prevent accidents or injuries.

Strict Product Liability

A legal doctrine that holds manufacturers, distributors, or sellers liable for damages caused by defective products, regardless of fault or negligence.

Strict-Liability Action

Legal action where the defendant is held liable for damages without the need for proof of negligence or fault.