Under Revised Article 3 of the Uniform Commercial Code rules for beneficiaries, in the event of a breach of transfer warranty, _____.
A) the damages recoverable will be less than the amount of the instrument
B) the damages recoverable may not be more than the amount of the instrument plus expenses and loss of interest incurred as a result of the breach
C) a beneficiary of the transfer warranties who took the instrument in good faith may not recover from the warrantor an amount equal to the loss suffered as a result of the breach
D) no damages may be recovered

Question

Quizplus · Accepted Answer

Revised Article 3 of the Uniform Commercial Code provides that in the event of a breach of a transfer warranty, a beneficiary of the transfer warranties who took the instrument in good faith may recover from the warrantor an amount equal to the loss suffered as a result of the breach. However, the damages recoverable may not be more than the amount of the instrument plus expenses and loss of interest incurred as a result of the breach.

Under Revised Article 3 of the Uniform Commercial Code Rules