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

Question

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

Quizplus · Accepted Answer

By writing "without recourse" on the back of the check, Nero is transferring the liability of the check to Odell. This relieves Nero of any further responsibility for the check. However, it does not render the check nonnegotiable and Odell can still negotiate the check to a third party without being liable for it.

On the Back of a Check Payable to Nero, He