Fact Pattern 24-1Lisa writes a check on her account at Metro Bank to Niklas to pay a debt. Niklas negotiates the check by indorsement to O'Leary, who presents it for payment to Prime Bank.
-Refer to Fact Pattern 24-1.Niklas is
A) not liable for payment under any circumstances.
B) primarily liable.
C) secondarily liable.
D) contractually liable.

Question

Fact Pattern 24-1Lisa writes a check on her account at Metro Bank to Niklas to pay a debt. Niklas negotiates the check by indorsement to O'Leary, who presents it for payment to Prime Bank.
-Refer to Fact Pattern 24-1.Niklas is 
A) ​not liable for payment under any circumstances. 
B) ​primarily liable. 
C) ​secondarily liable. 
D) ​contractually liable.

Quizplus · Accepted Answer

Niklas is secondarily liable because he negotiated the check by indorsement to O'Leary. As a result, he is only liable if O'Leary fails to pay, and the bank has exhausted all other options for payment.

Fact Pattern 24-1Lisa Writes a Check on Her Account at Metro