Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 10

On August 10, 2011, Theta Electronic Laboratories, Inc. executed a promissory note to George and Marguerite Thomson. Six other individuals, Gerald Exten, Emil O'Neil, and James Hane, and their wives also indorsed the note. The Thomsons then transferred the note to Hane on November 26, 2013. Although a default occurred at this time, it was not until April 2014 that Hane gave notice of the dishonor and made a demand for payment on the Extens as indorsers. Are the Extens liable under their indorser's liability?