True/False
Indicate whether the sentence or statement is true
or false.
|
|
|
1.
|
A
signature may be typed.
|
|
|
2.
|
A
signature may be handwritten.
|
|
|
3.
|
Signature liability extends to any person who signs a negotiable
instrument.
|
|
|
4.
|
A
maker is secondarily liable on an instrument.
|
|
|
5.
|
A
drawer's liability does not arise until presentment and notice of dishonor.
|
|
|
6.
|
To
properly present a draft for payment, the holder must present it to the drawer.
|
|
|
7.
|
An
accommodation maker is secondarily liable on an instrument.
|
|
|
8.
|
In
general, an agent must clearly indicate that he or she is signing on behalf of a clearly named
principal to bind the principal.
|
|
|
9.
|
An
authorized agent may be personally liable on an instrument if the agent signs the agent's name but
not the principal's name.
|
|
|
10.
|
An
unauthorized signature binds the person whose name is forged.
|
|
|
11.
|
A
drawer who is induced by an imposter to issue a check in the name of an impersonated payee can avoid
payment on the check to an innocent holder.
|
|
|
12.
|
A
person who transfers an instrument warrants to any other person who in good faith accepts it (with
exceptions) that it has not been altered.
|
|
|
13.
|
Fraud
in the execution occurs whenever someone signs an instrument before all essential terms have been
completed.
|
|
|
14.
|
A
drawer's discharge in bankruptcy will defeat the claim of an HDC for payment on a check issued by the
drawer.
|
|
|
15.
|
Personal defenses defeat the claims of HDCs.
|
|
|
16.
|
When
a person signs a negotiable instrument under extreme duress, the instrument is enforceable only by an
HDC.
|
|
|
17.
|
The
defense of illegality is always a personal defense.
|
|
|
18.
|
The
defense of minority is always a universal defense.
|
|
|
19.
|
When
the drawee of an unaccepted draft or check pays to a holder the amount due in full, all parties to
the instrument are discharged.
|
|
|
20.
|
Accidental destruction of a negotiable instrument cancels it.
|