What does this answer choice mean?

  • Creator
    Topic
  • February 23, 2017 at 1:31 am #1495767
    AMERICANDREAM
    Participant

    Karr transferred a negotiable instrument payable to his order to Watson for value. Karr did not endorse the instrument. As a result of the transfer, Watson

    Answer: Is entitled to an unqualified endorsement by Karr.
    This answer is correct. Any transfer for value of an order instrument gives the transferee (Watson) the right to obtain an unqualified endorsement from the transferor (Karr).

    What does this mean? Can someone explain it in more simple language?

    AUD - 92
    BEC - NINJA in Training
    FAR - 90
    REG - 88
    If you think you failed, you passed.
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