Liability on a Negotiable Instrument That Is Imposed on a Party

question 62

Multiple Choice

Liability on a negotiable instrument that is imposed on a party only when the party primarily liable on the instrument defaults and fails to pay the instrument when due is referred to as ________.

• A) secondary liability
• B) unqualified liability
• C) fringe liability
• D) warranty liability

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Definitions:

Representativeness heuristic

A cognitive shortcut used when making judgments about the probability of an event under uncertainty, based on how similar it is to a typical case.

Team leader

A person appointed or recognized within a group who guides, inspires, and coordinates the efforts towards achieving team objectives.

Accessibility heuristic

A cognitive shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method, or decision.

Decision method

Refers to the systematic process or technique used to make choices or solve problems.