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

question 41

Multiple Choice

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

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

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Definitions:

Unlimited Driving Plan

A service plan allowing for unrestricted use of a vehicle for a set period of time, often used by car rental companies.

Kilometres

A unit of length in the metric system equal to 1,000 meters, commonly used to measure distances between places.

Harmonized Sales Tax

A combined tax that includes both federal and provincial sales taxes, applied to the purchase of goods and services.

Price Tags

Labels or stickers on merchandise displaying the price of the item.