Which of the Following Is True Regarding the Liability of an Accommodation

question 20

Multiple Choice

Which of the following is true regarding the liability of an accommodation party?

• A)As a maker,an accommodation party has primary liability,but as an endorser,the accommodation party has secondary liability.
• B)An accommodation party has primary liability both as a maker and as an endorser.
• C)An accommodation party has secondary liability both as a maker and as an endorser.
• D)An accommodation party has primary liability as either a maker or endorser,but only if all other parties to the instrument have filed for and received bankruptcy protection.
• E)An accommodation party has primary liability as a maker only if all other parties to the instrument have filed for and received bankruptcy protection,and secondary liability in any other case regardless of whether the accommodation party is a maker or an endorser.

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Definitions:

Quantity Demanded

The aggregate sum of a product or service that buyers are ready and able to buy at a particular price point.

Gasoline

A flammable liquid derived from petroleum, primarily used as fuel in internal combustion engines.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price within a specified period.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period of time.