Under the UCC,if an Agent Enters into a Contract That

question 13

Multiple Choice

Under the UCC,if an agent enters into a contract that is a negotiable instrument,which of the following is true regarding the liability of the principal?

• A)The principal cannot be held liable unless the agent's signature indicates that it was made in a representative capacity.
• B)The principal cannot be held liable unless the principal's name is on the instrument or the agent's signature indicates that it was made in a representative capacity,or the agent has been ruled insolvent.
• C)The principal cannot be held liable unless the principal's name is on the instrument.
• D)The principal is liable to the same extent as if no negotiable instrument were involved because the negotiable instrument has no effect on the principal's liability.
• E)The principal cannot be held liable unless the principal's name is on the instrument or the agent's signature indicates that it was made in a representative capacity.

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Definitions:

Executive Order

An executive order is a directive issued by the President of the United States that manages operations of the federal government.

Judicial Review

The power of courts to review the actions of executive or legislative bodies to ensure they comply with the constitution or other standards.

Arbitration

The settling of a dispute by submitting it to a disinterested third party (other than a court), who renders a decision. The decision may or may not be legally binding.

Alternative Dispute Resolution

A range of processes, such as mediation and arbitration, designed to resolve disputes without traditional litigation.