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

Question

Quizplus · Accepted Answer

The indorsement "Without Recourse" by Mary Roberts limits her liability. It means that Mary Roberts does not assume the liability if the check is dishonored (not paid). This type of indorsement specifically removes the endorser's guarantee to pay if the check is not honored by the bank or the drawer, thus limiting Mary Roberts' liability.

Ricardo Is the Holder of a Check That Contains the Indorsement