Stanley, who owes Milton money, indorses a draft to him with the term "without recourse." The instrument later is dishonored.Which of the following types of indorser is Stanley?
A)a holder
B)an agent
C)an unqualified indorser
D)a qualified indorser

Question

Quizplus · Accepted Answer

Stanley is a qualified indorser because he used the term "without recourse," which limits his liability on the instrument. Stanley will only be held liable if there are specific circumstances, such as forgery or lack of legality.

Stanley, Who Owes Milton Money, Indorses a Draft to Him