Assignment: Please answer the following questions: 1.a.What is the difference between an “order instrument” and a “bearer instrument”? b.How is each type of instrument negotiated? Please include the definitions of “order instrument,” “bearer instrument,” and “negotiation” in your answer. 2.Why is transfer of a negotiable instrument by negotiation preferable to transfer of a negotiable instrument by assignment? 3.What is the difference between a “holder” and a “holder in due course”? Please include the definitions of the terms “holder” and “holder in due course” in your answer. 4.a.What is “signature liability”? b.What is the difference between “primary liability” and “secondary liability”? c.Who is primarily liable and who is secondarily liable on negotiable instruments? Please include the definitions of the parties who are primarily and secondarily liable in your answer. 5.How may an agent avoid personal liability when signing a negotiable instrument on behalf of a principal? Instructions: Write your answers to each question, including definitions where requested. Note: Read the question, answer the question, move on to the next question. Answer only the question asked. These are not essay questions and this is not a term paper. Analysis is not required. Your answers must be concise and responsive to the question asked.
Business Law for Accountants Negotiable Instrument Questions
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