Because he or she was in the best position to prevent wrongdoing with respect to an instrument, transfer and presentment warranties attempt to shift liability to

a. the holder of an unauthorized item when the wrongdoing is discovered.

b. the drawee or payee on an instrument.

c. the party on whose account an unauthorized item is made or drawn.

d. the person who dealt face to face with the wrongdoer.

To obtain a loan, Nero signs a note payable to Opie. Opie indorses the note and sells it to Payday Capital, which in turn indorses the note and negotiates it to Quality Investments. Nero tenders a partial payment on the note, which Quality refuses. Discharged to the extent of the tender is

a. Opie only.

b. no one.

c. Opie and Payday Capital.

d. Payday Capital only.

Textile Inc. sells goods to United Stores in exchange for a note signed by the buyer. Textile sells the note to Valley Finance Company. In this situation, transfer warranties arise because

a. Valley has no knowledge of any bankruptcy proceedings against United.

b. the note was transferred for consideration.

c. Textiles did not alter the note.

d. the signatures on the note were authentic and authorized.