What form of liability exists when a party is only responsible to pay on a negotiable instrument in case of default of the party who shoulders the obligation of liability for the instrument?
A)Primary Liability
B)Secondary Liability
C)Accidental Liability
D)International Liability

Question

Quizplus · Accepted Answer

The UCC requires a party that is secondary liable to pay on the negotiable instrument only if a person who is primarily liable defaults on that obligation.

What Form of Liability Exists When a Party Is Only