Which of the Following Statements Ties to the 'Maker' as the Party

question 5

Multiple Choice

Which of the following statements ties to the 'maker' as the party that is primarily liable?

• A) Indorsers may disclaim contractual liability by indorsing "without recourse".
• B) The drawer of a non-check draft may disclaim her contractual liability on the instrument by drawing "without recourse".
• C) If the drawee varies the terms when accepting the draft, it is liable according to the terms as varied.
• D) The obligation is owed to a person entitled to enforce the note or to an indorser that paid the note.
• E) An unauthorized signature may be ratified by the principal.

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Definitions:

Marginal Product

The additional output resulting from using one more unit of a particular input, assuming all other inputs remain constant.

Monopsony

A market structure in which there is only a single buyer of a good, service, or resource.

Labor Supply Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor that workers are willing to supply.

Monopsonist

A market condition where there is only one buyer for a product or service, giving the buyer significant power over prices and terms.