Laura is in possession of a check which contains the following indorsement,"Juliet Grant,without recourse,for collection only." The indorsement would be classified as:
A) blank,qualified,and restrictive.
B) blank,unqualified,and unrestrictive.
C) special,unqualified,and restrictive.
D) special,qualified,and unrestrictive.

Question

Quizplus · Accepted Answer

The indorsement is "special" because it specifies a person to whom the check is to be payable ("for collection only"), "qualified" because the phrase "without recourse" indicates that the endorser does not assume liability if the check is dishonored, and "restrictive" because it includes a condition that limits the use of the check ("for collection only").

Laura Is in Possession of a Check Which Contains the Following