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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