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:

Anorexia Nervosa

An eating disorder in which a person (usually an adolescent female) diets and becomes significantly (15 percent or more) underweight, yet, still feeling fat, continues to starve.

Drastic Weight-Loss

involves a significant reduction in body weight in a short period of time, which can be due to various factors including diet, exercise, or medical conditions.

Underweight

Being below the weight considered normal or healthy for a person's age, height, and body type.

Spices

Substances derived from plants, used for flavoring, coloring, or preserving food, and may have health benefits.