Which of the Following Parties Has Primary Liability on a Draft

question 13

Multiple Choice

Which of the following parties has primary liability on a draft?

• A)the drawee
• B)the maker
• C)the drawer
• D)the indorser

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Definitions:

Lost Profits

Financial gains that could have been earned but were not due to a breach of contract or other wrongful act.

Consequential Damages

Compensation for losses not directly caused by a breach of contract but resulting as a foreseeable consequence of the breach.

Breach of Warranty

The failure to fulfill the terms of a promise or guarantee made about the quality or functionality of a product or service.

40,000 Mile Warranty

A guarantee provided, typically by a vehicle manufacturer, covering repairs and certain maintenance for up to 40,000 miles of vehicle use.