A court will impose liability for payment if all of the following are true EXCEPT
A)the instrument was presented for payment.
B)it was dishonoured.
C)prompt notice of the dishonour was given to the defendant.
D)a lawsuit was commenced within the limitation period.
E)a notice of arbitration was served on the endorser.

Question

Quizplus · Accepted Answer

Notice of arbitration is not required for imposing liability for payment. The other options are necessary for imposing liability for payment.

A Court Will Impose Liability for Payment If All of the Following