Warranties of a person obtaining payment or acceptance of an unaccepted draft include:
A)the warrantor is a person entitled to enforce the draft.
B)the warrantor has no knowledge that the drawer's signature is unauthorized.
C)the draft has not been altered.
D)All of the above.

Question

Quizplus · Accepted Answer

All three options (A, B, and C) are warranties that a person obtaining payment or acceptance of an unaccepted draft is making. They are essentially stating that they have the right to enforce the draft, they had no reason to believe the drawer's signature was forged, and the draft has not been altered in any way. Any of these warranties being false can lead to legal issues and potential liability for the warrantor.

Warranties of a Person Obtaining Payment or Acceptance of an Unaccepted