Negotiable Instruments Law: Choose the CORRECT answer and EXPLAIN.

1. The drawee is not primarily liable a) Cashier's check 4. A bill of exchange drawn on a bank and payable on demand b) Manager's check is c) Certified check a) Check d) Traveler's check b) Treasury c) Domestic bill 2. If the instrument is payable to the order of a third person d) Bill of lading a) He is liable to all parties subsequent to the payee b) He is not liable to the party 5. Which is not correct? The acceptor by accepting the () He is liable to the payee and to all subsequent parties instrument d) He is liable to all parties subsequent to the marker or drawer. a) Admits the existence of the payee and his capacity to indorse b) Admits the existence of the drawee, the genuiness of his 3. Which of the following is not negotiable? signature and his capacity and authority to draw the instrument a) Pay to D or order P10, 000 on or before Dec.31, 1997 (Sadie) c) Engages that he will pay is according to the tenor of his b) Pay to A or order P10, 000 Notice of Dishonor waived (Sgd. acceptance B) d) Admits the existence of the endorser, the genuiness of his c) Pay to B or order P5, 000 or deliver two horses at the option signature and his capacity and authority to indorse of the holder (Sgd.D) instruments d) Pay to C or order P10, 000 and to deliver 10 sacks of rice (Sgd. D)