Which of the Following Is True Regarding the Warranty or Warranties

question 25

Multiple Choice

Which of the following is true regarding the warranty or warranties applicable if an instrument is not an unaccepted draft presented to a drawee?

• A) Only one warranty applies, that the warrantor of the instrument is or was entitled to payment or authorized to obtain payment.
• B) Only one warranty applies, that the instrument has not been altered.
• C) Only one warranty applies, that the warrantor has no knowledge that the drawer's signature or the draft is unauthorized.
• D) Two warranties are applicable: (1) that the instrument has not been altered, and (2) that the warrantor has no knowledge that the drawer's signature or the draft is unauthorized.
• E) Three warranties are applicable: (1) that the instrument has not been altered, (2) that the warrantor has no knowledge that the drawer's signature or the draft is unauthorized, and (3) that the warrantor of the instrument is or was entitled to payment or authorized to obtain payment.

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Definitions:

Fauces

Space between the cavity of the mouth and the pharynx.

Gastric Phase

A phase of digestion that occurs in the stomach, initiated by the presence of food, which triggers acid secretion and gastric enzyme activity.

Gastrin

Hormone secreted in the mucosa of the stomach and duodenum that stimulates the secretion of hydrochloric acid by the parietal cells of the gastric glands.

Gastric Secretion

The process of producing and releasing fluids containing hydrochloric acid and digestive enzymes by the stomach lining.