If an instrument is nonnegotiable, the _____.
A) Uniform Commercial Code controls the rights, and the general rules of property law control liabilities of the parties involved
B) general rules of contract law control the rights and liabilities of the parties involved
C) Uniform Commercial Code controls the rights, and the general rules of comparative law control the liabilities of the parties involved
D) general rules of tort law control the rights and liabilities of the parties involved

Question

Quizplus · Accepted Answer

If an instrument is negotiable, the law of negotiable instruments in the Uniform Commercial Code controls in determining the rights and liabilities of the parties to the instrument. If an instrument is nonnegotiable, the general rules of contract law control. The purpose of determining negotiability is to ascertain whether a possessor of the instrument can become a holder in due course.

If an Instrument Is Nonnegotiable, the _____