Art signs a promissory note payable to the order of Swains Jewelers for $8,000 for a wedding ring.If the owner of Swains simply signs "Swains Jewelers":
A) the note is restrictively indorsed.
B) the indorsement is ineffective because the note will have to bear the signature of the person who indorsed it.
C) the note is negotiable by delivery.
D) the indorsement will be valid only if dated.

Question

Quizplus · Accepted Answer

If the owner of Swains simply signs "Swains Jewelers," it is a blank endorsement, which makes the note negotiable by delivery. This means that whoever is in possession of the note can negotiate it, meaning they can transfer it to someone else.

Art Signs a Promissory Note Payable to the Order of Swains