Ricardo is the holder of a check that contains the indorsement "Without Recourse, (signed)Mary Roberts." This indorsement:
A) makes further indorsement impossible.
B) requires a special indorsement by the transferee.
C) limits the liability of Mary Roberts.
D) limits the liability of all subsequent holders including Ricardo.

Question

Quizplus · Accepted Answer

The indorsement "Without Recourse" limits the liability of Mary Roberts to subsequent holders such as Ricardo. It indicates that Mary is not assuming responsibility for the payment of the check if it is dishonored by the drawee bank. This does not affect the ability of Ricardo to further endorse the check.

Ricardo Is the Holder of a Check That Contains the Indorsement