Fact Pattern 25-1B
Belle obtains a check payable to her order from Charmayne.Belle signs the back and adds the notation "without recourse."
-Refer to Fact Pattern 25-1B.By writing "without recourse" with her signature,Belle
A)avoids the risk of loss from theft of the instrument.
B)relieves herself from liability on the instrument.
C)converts the check into a nonnegotiable instrument.
D)locks the instrument into the bank collection process.

Question

Fact Pattern 25-1B 
Belle obtains a check payable to her order from Charmayne.Belle signs the back and adds the notation "without recourse."
-Refer to Fact Pattern 25-1B.By writing "without recourse" with her signature,Belle
A)avoids the risk of loss from theft of the instrument.
B)relieves herself from liability on the instrument.
C)converts the check into a nonnegotiable instrument.
D)locks the instrument into the bank collection process.

Quizplus · Accepted Answer

By adding the notation "without recourse" with her signature, Belle is relieving herself from liability on the instrument. This means that if the check bounces or is contested in any way, Belle cannot be held responsible for payment. However, this does not prevent Belle from the risk of loss from theft of the instrument or affect the negotiability of the check.