Under the UCC,if an agent enters into a contract that is a negotiable instrument,which of the following is true regarding the liability of the principal?
A)The principal cannot be held liable unless the agent's signature indicates that it was made in a representative capacity.
B)The principal cannot be held liable unless the principal's name is on the instrument or the agent's signature indicates that it was made in a representative capacity,or the agent has been ruled insolvent.
C)The principal cannot be held liable unless the principal's name is on the instrument.
D)The principal is liable to the same extent as if no negotiable instrument were involved because the negotiable instrument has no effect on the principal's liability.
E)The principal cannot be held liable unless the principal's name is on the instrument or the agent's signature indicates that it was made in a representative capacity.

Question

Quizplus · Accepted Answer

A)In certain situations the agent is the only party liable for the contract.The Uniform Commercial Code UCC)governs negotiable instruments and states that other parties,that is,principals,cannot be liable for them if their name is not on the instrument or if the agent's signature does not indicate that it was made in a representative capacity.
B)In certain situations the agent is the only party liable for the contract.The Uniform Commercial Code UCC)governs negotiable instruments and states that other parties,that is,principals,cannot be liable for them if their name is not on the instrument or if the agent's signature does not indicate that it was made in a representative capacity.
C)In certain situations the agent is the only party liable for the contract.The Uniform Commercial Code UCC)governs negotiable instruments and states that other parties,that is,principals,cannot be liable for them if their name is not on the instrument or if the agent's signature does not indicate that it was made in a representative capacity.
D)In certain situations the agent is the only party liable for the contract.The Uniform Commercial Code UCC)governs negotiable instruments and states that other parties,that is,principals,cannot be liable for them if their name is not on the instrument or if the agent's signature does not indicate that it was made in a representative capacity.

Under the UCC,if an Agent Enters into a Contract That