Quiz No. 4 - Nego

Classify the party according to their liability:

the acceptor of a bill of exchange

• Primarily liable

• Secondarily liable

• May be primarily or secondarily liable

• Not liable

It refers to the obligation of a party to a negotiable instrument to pay the same according to its terms.

Classify the party according to their liability:

the maker of a promissory note

• Primarily liable

• Secondarily liable

• May be primarily or secondarily liable

• Not liable

Classify the party according to their liability:

the drawer of a bill

• Primarily liable

• Secondarily liable

• May be primarily or secondarily liable

• Not liable

Classify the party according to their liability:

the indorser of a note or a bill

• Primarily liable

• Secondarily liable

• May be primarily or secondarily liable

• Not liable

Classify the party according to their liability:

the drawee until he accepts the instrument in which case he becomes an acceptor

• Primarily liable

• Secondarily liable

• May be primarily or secondarily liable

• Not liable

A person who writes, in addition to his signature, on the back of an instrument "I hereby guarantee payment of this instrument" or "payment guaranteed".

Classify the party according to their liability:

the qualified indorser

• Primarily liable

• Secondarily liable

• May be primarily or secondarily liable

• Not liable

Joint payees or joint indorsees who indorse are deemed to indorse jointly and severally. Their liability is ________.

For an agent to escape personal liability, he must disclose his principal and the fact that he is acting only as agent.

• True

• False

• I don't want to answer

• I don't know the answer