A Person Cannot Be Held Liable, Even by a Holder

question 36

Multiple Choice

A person cannot be held liable, even by a holder in due course, if he or she signs an instrument that is apparently not negotiable and the paper is later fraudulently converted into a(n) :

• A) statutory contract.
• B) specialty contract.
• C) arbitration agreement.
• D) negotiable instrument.

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Definitions:

Single Product

Referring to businesses or production processes that focus on the manufacture or sale of one specific product.

Redesign

The process of changing or modifying the design of a product, service, or system to improve functionality or aesthetics.

Throughput

The time required to move orders through the production process, from receipt to delivery.

Rated Capacity

The maximum amount of output that a system, facility, or machine is designed to produce under specified conditions.