Which of the Following Stands True for a Special Indorsement

question 14

Multiple Choice

Which of the following stands true for a special indorsement?

• A) The payee of a check can indorse a special indorsement over to a third party by writing: "Pay to the order of" the third party and then signing her name.
• B) It is known as an agency indorsement.
• C) A special indorsement attempts to limit payment to a particular person or otherwise prohibit further transfer or negotiation.
• D) Special indorsements such as "for deposit" or "for collection" are effective.
• E) A special indorsement is known to create conditional contract liability in the indorser.

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Definitions:

Learning

The process of acquiring through experience new and relatively enduring information or behaviors.

Retrieval

The process of getting information out of memory storage.

Memory

The persistence of learning over time through the encoding, storage, and retrieval of information.

Echoic Memory

A momentary sensory memory of auditory stimuli; if attention is elsewhere, sounds and words can still be recalled within 3 or 4 seconds.