Which of the following is true regarding contractual liability on a negotiable instrument?

a-It can arise from negligence relating to the issuance of the instrument.

B- It can arise even when a person has not signed the instrument.

C- It cannot arise when a person has authorized someone else to sign the instrument.

D- It cannot arise from improper payment of the instrument.

Gabrielle borrows $1,000 from Frank to pay for school and prepares Frank a note for that amount, identifying herself as the maker of the note. Frank requests that Gabrielle's father sign the note as an accommodation maker, and he does so. Which of the following is true in this case?

A- Gabrielle has primary liability for the note as its initial maker, and her father has secondary liability for it as an accommodation maker.

B- Gabrielle and her father have the same contractual liability for the note.

C- As the initial maker of the note, only Gabrielle has primary liability for it.

D-Since he is an accommodation maker, only Gabrielle's father has primary liability for the note

Chang presents a promissory note to Rahim. Rahim indorses it and negotiates it to John, who indorses it and negotiates it to Andy. Which of the following is true regarding this case?

A- John is primarily liable on the basis of his indorsement.

B- Rahim is primarily liable on the basis of his indorsement.

C- Even if John and Rahim do not pay the note, Chang cannot be held liable by Andy because Chang is the maker.

D- John has no liability to Rahim because John indorsed after Rahim indorsed the note.

Anne borrows $2,000 from Jerry and gives him a promissory note for $2,000 at 10 percent annual interest payable in 100 days. Jerry indorses the note "Pay to the order of Ethan" and negotiates the note to Ethan. At the end of 100 days, Ethan takes the note to Anne. Under these circumstances, if Anne _____.

A- dishonors the note, Ethan cannot sue Anne on the basis of her maker's obligation

B-dishonors the note, Ethan can hold Jerry secondarily liable without giving him notice of the dishonor

C- dishonors the note, Ethan cannot hold Jerry secondarily liable on his indorsement

D- pays Ethan the $2,000 and accrued interest, she can have Ethan mark it "paid" and give it back to her