On the back of a check payable to Lo, she writes "Pay to Mei, without recourse" and signs it. This
A)does not effect the check's negotiability or any party's liability.
B)relieves Lo of liability on the check.
C)relieves Mei of liability on the check.
D)renders the check nonnegotiable.

Question

Quizplus · Accepted Answer

The phrase "without recourse" when used by an endorser on a negotiable instrument, such as a check, indicates that the endorser does not wish to assume liability for the instrument. In this case, by writing "Pay to Mei, without recourse" and signing it, Lo is indicating that she does not want to be liable if the check is not honored. This does not affect the negotiability of the check or Mei's liability.

On the Back of a Check Payable to Lo, She