Faro is an agent authorized to sign negotiable instruments on behalf of Global Supply Inc. To protect against potential liability on a note signed on the corporation's behalf, Faro should
A)not identify Global Supply nor indicate his agency status.
B)sign "Faro, Global Supply Inc.," but not indicate his agency status.
C)indicate his agency status, but not identify Global Supply.
D)identify Global Supply and indicate his agency status.

Question

Quizplus · Accepted Answer

To protect against potential liability on a note signed on behalf of Global Supply Inc., Faro should identify Global Supply and indicate his agency status. This ensures that it is clear Faro is acting as an agent for the corporation, not in a personal capacity, which helps to shield him from personal liability.

Faro Is an Agent Authorized to Sign Negotiable Instruments on Behalf