Part I. Directions. Please read each question carefully and select the best answer from the choices given (2.5 points each). Use the following facts to answer the next two questions. Ima Bilder is a well-known real estate developer. Audra MacLaine is Ima's agent, authorized to execute promissory notes, real estate mortgages, and other related contracts on Ima's behalf. Ima wants to buy real estate in downtown Memphis from TRZ Partners, the seller. Given her reputation, Ima believes that TRZ Partners will attempt to negotiate a higher price if Ima's involvement in the sale is known. Therefore, Ima authorizes Audra to negotiate the transaction as her agent. So Audra negotiates the deal and signs a negotiable promissory note simply as Audra MacLaine, Agent." The promissory note and other loan documents never mention Ima or her involvement in the transaction. The note is never repaid. TRZ Partners initially sues Audra as maker. Then TRZ Partners timely sues Ima as maker after discovering her role in the transaction. Who is liable as a maker? (A) Ima and Audra are both liable as a maker. (B) Ima is liable as a maker; Audra may be liable as a maker. (C) Ima is not liable as a maker; Audra may be liable as a maker. (D) Ima is not liable as a maker; Audra is liable as a maker. Who will be liable as a maker if evidence reveals that ABC Equity Group is the holder of the note (and ABC Equity Group purchased the note from TRZ Partners six months before the note's maturity date)? Grace received a $25 birthday check in recent days. Her name appeared on the payee line. Upon receipt, she indorsed the check and placed it in her purse. A few hours later, Thief stole her purse (and the check inside the purse). Thief will be a person entitled to enforce the check if: (A) Grace indorsed as follows: For Deposit Only - Account 54321987 / Grace Smith. (B) Grace indorsed as follows: Pay to Alan Johnson / Grace Smith. (C) Grace indorsed as follows: Without Recourse Or Warranty / Grace Smith. (D) Thief demands payment from the drawer within 30 days after the issue date