Fact Pattern 26-1B (Questions B8-B10 apply)
Destiny obtains a check payable to her order from Eugenia. Destiny signs the back and adds the notation "without recourse."
-Refer to Fact Pattern 26-1B. By writing "without recourse" with her signature, Destiny
A) avoids the risk of loss from theft of the instrument.
B) relieves herself of liability on the instrument.
C) converts the check into a nonnegotiable instrument.
D) locks the instrument into the bank collection process.

Question

Quizplus · Accepted Answer

By adding the notation "without recourse" with her signature, Destiny relieves herself of liability on the instrument. This means that if the check bounces, but there is no fault of Destiny, she will not be held liable for it. However, it does not prevent the risk of loss from theft, nor does it convert the check into a nonnegotiable instrument or lock it into the bank collection process.

Fact Pattern 26-1B (Questions B8-B10 Apply)