1. What happens when a negotiable instrument has either been canceled by the holder or the holder is paid in full?

a)only warranty liability remains

b)discharge of liability for all parties

c) discharge of liability for the payor

d) accord and satisfaction

2. Personal defenses to liability for payment on a negotiable instrument are:

a) available only for warranty liabilities.

b) available only to parties who have signed the instrument.

c) effective against any holder.

d) effective against a holder, unless they are a holder in due course.

3. Which of the following are correct statements about the writing requirement of a negotiable instrument? Choose 2 answers.

a) may be any intentional reduction to a tangible form

b) must be on paper

c) must be typed or printed using ink

d) may be a typed, printed, or handwritten document