Which of the Following Statements Is True of an Indorsement

question 50

Multiple Choice

Which of the following statements is true of an indorsement?

• A) It applies only to payments made to a depositary bank.
• B) It does not affect future attempts to negotiate the instrument.
• C) It generally does not make a person liable on the instrument even if he or she is engaged in any illegality affecting the instrument.
• D) It makes a person liable on an instrument indorsed by him or her if the person primarily liable on it does not pay it.

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Definitions:

Fracture

A break in bone or cartilage, which can range in severity from a small crack to a complete break.

Circumduction

A type of joint movement where the distal end of a bone moves in a circle while the proximal end remains in one position.

Pronation

A rotational movement of the forearm that turns the palm downward or backward.

Rotation

The act or process of turning around a center or an axis, a fundamental movement in biomechanics.