Drawers of checks and drafts and unqualified indorsers of negotiable instruments have ________ on the instruments.
A) strict liability
B) no liability
C) secondary liability
D) primary liability

Question

Quizplus · Accepted Answer

Drawers of checks and drafts have primary liability, but unqualified indorsers have secondary liability. This means they are liable only if the primary liable parties (such as the drawer or previous indorsers) do not pay. Therefore, the correct answer is C- secondary liability.

Drawers of Checks and Drafts and Unqualified Indorsers of Negotiable