Which of the Following Is True Under the UCC Regarding

question 22

Multiple Choice

Which of the following is true under the UCC regarding liability of a principal to an agent if the agent enters into a contract that is a negotiable instrument?

• A) 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.
• B) The principal cannot be held liable unless the principal's name is on the instrument.
• C) The principal cannot be held liable unless the agent's signature indicates that it was made in a representative capacity.
• D) 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.
• 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, or the agent has been adjudicated insolvent.

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Definitions:

Direct Channel

A marketing path that involves no intermediaries between the producer and the consumer, allowing for direct business transactions.

Indirect Channel

An indirect channel is a path a product or service takes from the producer to the customer through intermediaries such as wholesalers, distributors, or retailers.

Marketing Channels

The set of intermediaries or pathways through which goods and services are distributed from producers to consumers.

Consumer Product

Goods produced and intended for use by consumers for personal, family, or household purposes.