[Roommate Troubles] Dexter, Bernard, and Garren were roommates who do not get along and decide to go their separate ways when their lease expires on May 31. Dexter owes Bernard $500 and signs a promissory note that he will pay Bernard $500 by July 1. Bernard, who owes Garren money, endorses the back of the note and writes "Pay to the order of Garren" on the back and gives the note to Garren. On July 2, Garren tells Dexter that Bernard signed the promissory note to him, so Dexter should just pay Garren the $500. Dexter refuses to pay Garren anything. Garren then tells Bernard that Dexter dishonored the note and sues Bernard for the value of the note.
-If Garren properly presents the note to Dexter and Dexter simply writes "dishonor" on the note, is there a proper notice of dishonor?
A) No, because the notice does not identify the instrument in question.
B) No, unless Garren specifically states that he is dishonoring the note.
C) No, because Garren did not sign his name.
D) No, because simply writing "dishonor" is insufficient to constitute notice.
E) Yes, because if the word "dishonor" on the instrument is sufficient to constitute notice.
Correct Answer:
Verified
Q56: Which of the following results in liability
Q57: Zachary, who has been authorized to write
Q58: [The Furniture Shop] Chloe writes a check
Q59: When a party's liability for a negotiable
Q60: Carl, without Austin's knowledge, impersonates Austin and
Q62: If Charla was not authorized to sign
Q63: [Run Around] Hema issues a promissory note
Q64: [Roommate Troubles] Dexter, Bernard, and Garren were
Q65: [Roommate Troubles] Dexter, Bernard, and Garren were
Q66: [Diamond Debacle] Prida owns Prida's Jewelry Store.
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents