Chang gives a promissory note to Rahim. Rahim indorses it and negotiates it to John, who indorses it and negotiates it to Andy. Which of the following statements is true of this scenario?
A) Even if John and Rahim do not pay the note, Chang cannot be held liable by Andy because Chang is the maker.
B) Rahim is primarily liable on the basis of his indorsement.
C) John has no liability to Rahim because John indorsed after Rahim indorsed the note.
D) John is primarily liable on the basis of his indorsement.
Correct Answer:
Verified
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