Once an appointed authorized representative signs a negotiable instrument, while unambiguously disclosing his or her agency status, and the identity of the maker or drawer, then ________.
A) the authorized agent becomes personally liable to pay for the negotiable instrument
B) the signature binds the maker or drawer of the negotiable instrument to the instrument
C) the agent cannot sign another negotiable instrument until this instrument's transaction is complete
D) the agent is obligated with secondary liability to the instrument

Question

Quizplus · Accepted Answer

When an appointed authorized representative signs a negotiable instrument, while unambiguously disclosing his or her agency status, and the identity of the maker or drawer, the signature binds the maker or drawer of the negotiable instrument to the instrument. The authorized agent does not become personally liable to pay for the negotiable instrument, but may have secondary liability if the maker or drawer does not fulfill their obligations. The agent is not restricted from signing another negotiable instrument until this instrument's transaction is complete.

Once an Appointed Authorized Representative Signs a Negotiable Instrument, While