Question
19. Salmond signs a note for the purpose of lending credit to John. Salmond also makes his father Richard sign the note because of his
19. Salmond signs a note for the purpose of lending credit to John. Salmond also makes his father Richard sign the note because of his shaky financial condition. This indicates that Richard has signed the note in the capacity of a(n):
A. drawee.
B. accommodation maker.
C. drawee.
D. indorser.
20. Jack received a check as payment for the work he did. He indorsed the check "without recourse." This has what legal effect?
A. The drawer of the check is discharged from primary liability on the check.
B. Jack is discharged from secondary liability on the check.
C. The drawer of the check is discharged from secondary liability on the check.
D. Jack is discharged from primary liability on the check.
21. Flanigan is the Treasurer of ABC Corp. As such, he is authorized to sign checks for the
corporation. A supplier bills ABC for a legitimate obligation. Flanigan made out a check to the supplier and signed it "ABC Corp., by Flanigan, Treasurer". Who is liable on this check?
A. ABC only.
B. Flanigan only.
C. ABC and Flanigan.
D. Neither ABC nor Flanigan.
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