Which of the Following Is True Regarding the Liability of an Accommodation

question 4

Multiple Choice

Which of the following is true regarding the liability of an accommodation party?

• A) As a maker, an accommodation party has primary liability; but as an endorser, the party has secondary liability.
• B) An accommodation party has primary liability both as a maker and as an endorser.
• C) An accommodation party has secondary liability both as a maker and as an endorser.
• D) An accommodation party has primary liability as either a maker or endorser only if all other parties to the instrument have filed bankruptcy.
• E) An accommodation party has primary liability as a maker only if all other parties have filed bankruptcy, and secondary liability in any other case regardless of whether the accommodation party is the maker or endorser.

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Definitions:

Direct Data Entry

The process of entering data directly into a computer system or database without intermediate steps.

Internet-Based Service

Refers to any service offered over the Internet that enables users to access information, communicate with others, or perform tasks online.

Resource-Based Relative Value Scale

A schema used to determine how much medical providers should be paid, based on the value of the services they provide.

Payment System

A mechanism or a set of instruments that facilitates the transfer of funds from one entity to another, which can be operated by financial institutions, electronic systems, or through manual processes.