When Can a Transferee Bring Suit Against a Transferor for a Breach

question 10

Multiple Choice

When can a transferee bring suit against a transferor for a breach of warranty regarding a negotiable instrument?

• A)As soon as a transferee discovers a breach of warranty has occurred,he or she can bring suit against the transferor.
• B)A transferee must wait at least 3 business days after he or she discovers that a breach of warranty has occurred before bringing suit against the transferor.
• C)A transferee must wait at least 5 calendar days after he or she discovers that a breach of warranty has occurred before bringing suit against the transferor.
• D)A transferee must wait at least 10 business days after he or she discovers that a breach of warranty has occurred before bringing suit against the transferor.
• E)A transferee must wait at least 30 calendar days after he or she discovers that a breach of warranty has occurred before bringing suit against the transferor.

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Definitions:

Broad Guideline

General principles or recommendations that provide direction without being overly prescriptive or detailed.

Fixed Budget

A budget that remains constant, regardless of changes in business activity levels, revenues, or expenses.

Allocates

The process of distributing resources or tasks among people or places, typically according to a plan.

Fixed Amount

A specific, unchanging quantity or sum, often relating to financial transactions, salaries, or budgets.