In order to ensure negotiability,the Uniform Commercial Code assumes that the endorser is the true owner of the paper.If he or she found or stole the paper and transferred it to another by endorsement,the:

Question

Quizplus · Accepted Answer

The Uniform Commercial Code imposes liability on the endorser who is not the true owner of the paper and transfers it by endorsement. The endorser is liable for any loss suffered by the endorsee who relies on the endorsement. Thus, choice B is the correct answer. Choices A, C and D are incorrect as they do not reflect the provisions of the Uniform Commercial Code.

In Order to Ensure Negotiability,the Uniform Commercial Code Assumes That