1. Anyone who signs a negotiable instrument except qualified indorsers have primary signature liability.

True

False

2. Transfer warranties only extend to the initial transferee unless you first indorse the instrument.

True

False

3. Which two parties have primary signature liability?

_____________________

_____________________

4. Qualified indorsers do not have warranty liability.

True

False

5. Bob writes a check to cash for $1000 to pay a bill from Acme. He then finds out that Acme breached the contract so he decides he will not pay them and puts a stop payment on the check. However, the check is stolen by Theron Thief (and Bob was not negligent) who then gives it to his landlord, Larry Landlord, who Theron already owes $1000.If Larry does not know about the theft or any problems with the instrument, what is the status of Larry:

Accommodation Indorser

Holder in Due Course

A Maker

Ordinary Holder