A(n)________ is an indorsement that includes the notation "without recourse" or similar language that disclaims liability of the indorser.
A)qualified indorsement
B)unqualified indorsement
C)promissory indorsement
D)competent indorsement

Question

Quizplus · Accepted Answer

The phrase "without recourse" or similar language is used in a qualified indorsement, which means the indorser is not liable for any subsequent dishonor of the instrument. In contrast, an unqualified indorsement implies that the indorser is fully liable for the payment of the instrument. Promissory indorsement and competent indorsement are not correct terms used in the context of indorsement.

A(n)________ Is an Indorsement That Includes the Notation "Without Recourse