Dirk Is the Maker of a Note,on Which Erv Is

question 18

Multiple Choice

Dirk is the maker of a note,on which Erv is secondarily liable.Friendly Credit Company is the current holder of the note.Erv will be obli?gated to pay the note if

• A)Dirk defaults on the note.
• B)Friendly Credit breaches a transfer warranty.
• C)Friendly Credit negotiates the note to a third party.
• D)Friendly Credit presents the note for payment.

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Definitions:

Red Herring

A fallacy or distraction that leads away from the main issue or argument, often used to mislead or divert attention.

Logical Fallacy

An error in reasoning that renders an argument invalid or undermines the logic of a discussion.

Analogy

A comparison between an unfamiliar idea, thing, or situation and something the audience already understands.

401(K) Retirement Plans

A tax-advantaged retirement savings plan offered by many employers in the United States, allowing employees to save a portion of their paycheck before taxes.