Marion Maker makes out a negotiable promissory note payable to the order of Perry Payee for $1000.Perry indorses the note by writing "without recourse, Perry" and transfers the note for value to Steven.Steven, in need of cash, negotiates the note to Harriet by indorsing it with the words, "Pay to Harriet, Steven."

On the due date, Harriet presents the note to Marion for payment, only to learn that Marion has filed for bankruptcy and will have all debts (including the note) discharged in bankruptcy.Discuss fully whether Harriet can hold Marion, Perry, or Steven liable under either signature liability or warranty liability.

Signature liability is based on someone's signature on the instrument.In many ways signature liability is easy however, it must be presented on time, and if presentee says they will dishonor the note, then notice has to be given to the next person in line for liability on a timely basis.

If there is no signature on the instrument or one or more of the deadlines are missed, then we look to warranty liability.Warranty liability are promises implied by law (the transferor doesn't have to be consciously making the promises).The transfer and presentment warranties are on page 485.How do they apply here? EXPLAIN YOUR ANSWERS

1)Harriet v. Marion

a)Signature liability.

b)Warranty liability.

c)Does Marion have a defense?If so, can Harriet collect from Marion?

2)Harriet v. Perry

a)Signature liability.

b)Warranty liability.

c)Does Perry have a defense? Can Harriet collect from Perry?

3)Harriet v. Steven

a)Signature liability.

b)Warranty liability.

c)Does Steven have a defense? Can Harriet collect from Steven?