Explain when presentment warranties apply. Identify the presentment warranties on a check and a promissory note
Presentment warranties apply to someone who demands payment of an instrument from anyone liable on it. Presentment warranties apply when an instrument is returned to the maker or drawee for payment. Someone who presents a check for payment warrants that he is a holder, the check has not been altered, and he has no reason to believe the drawer's signature is forged. If any of these warranties are untrue, the bank has the right to demand a refund from the presenter. For a promissory note, the presenter makes only one warranty, and that is that he is a holder of the note. The presenter does not need to warrant that the note is not altered or that the maker's signature is authentic because a note is presented for payment to the maker himself.
You might also like to view...
The country-of-origin effect is always positive in a customer's perception.
Answer the following statement true (T) or false (F)
Revealing the presentation plan to the audience decreases their understanding of the presentation
Indicate whether the statement is true or false
Which of the following statements about correlative conjunctions is inaccurate?
A) Correlative conjunctions join unequal sentence elements. B) When greater emphasis is desired, correlative conjunctions are used instead of coordinating conjunctions. C) Correlative conjunctions are always used in pairs.
Venus, Inc. paid $12,000 on accounts payable. How does this transaction affect the accounting equation of Venus?
A) assets decrease by $12,000 and equity increases by $12,000 B) assets decrease by $12,000 and liabilities decrease by $12,000 C) assets increase by $12,000 and equity decreases by $12,000 D) assets increase by $12,000 and liabilities increase by $12,000