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:

KKK Robes

The distinctive garments worn by members of the Ku Klux Klan, often characterized by white fabric and conical hats designed to conceal their identities.

Minority Group

A group of people who, due to their physical or cultural characteristics, are singled out from the others in the society in which they live for differential and unequal treatment.

Gather A Crowd

The act of assembling a group of people in a specific location for a purpose, such as a meeting, performance, or demonstration.

Task Performance

The execution or accomplishment of a specific work-related activity or assigned task.