Warranty liability arises in the negotiation of an instrument only when a transferor indorses it.

Name: Warranty liability arises in the negotiation of an instrument only when a transferor indorses it.
Brand: Quizplus
Rating: 4.9 (41 reviews)

Question

Quizplus · Accepted Answer

Warranty liability can arise in the negotiation of an instrument even without an endorsement. When a person transfers an instrument for consideration, they make certain warranties to the transferee, regardless of whether the instrument is indorsed.

Warranty Liability Arises in the Negotiation of an Instrument Only