Week 5: Negotiation
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Short Quiz 004
An _______________ which purports to transfer to the ______ a part only of the amount payable
________ operate as a negotiation of the instrument.
a. indorsement, indorsee, does not
b. agreement, indorser, may not
c. instrument, negotiator, may
d. act, maker, does
Statement 1. Conditional indorsement is an indorsement which is subject to a happening or a
condition.
Statement 2. An indorser is not liable unless there are presentment and notice of dishonor, while an
assignor is liable even without notice of dishonor.
a. Statement 1 is false: Statement 2 is false
b. Statement 1 is true; Statement 2 is true
c. Statement 1 is false: Statement 2 is true
d. Statement 1 is true: Statement 2 is false
Statement 1. Indorsementcannot be written at the front of the instrument.
Statement 2. Qualified Indorsement specifies the person to whom or to whose order the instrument
is to be payable. The indorsee is necessary for the further negotiation of the instrument if the
instrument is an order instrument.
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- Fall '20
- Negotiable instrument, a. indorsement
