Question


(p. 571) Which of the following is true regarding whether an agent's signature may satisfy the requirement of negotiability that the signature of a maker or drawer appear?

A. A duly authorized agent's signature on behalf of his or her principal binds the principal and satisfies the signature requirement for negotiability.

B. An agent's signature on behalf of his or her principal cannot bind the principal and does not satisfy the signature requirement for negotiability.

C. An agent's signature on behalf of his or her principal binds the principal and satisfies the signature requirement for negotiability only if specific authorization from the principal allowing the agent to act on the specific transaction at issue is attached to the document.

D. A duly authorized agent's signature on behalf of his or her principal binds the principal and satisfies the signature requirement for negotiability only if the instrument is for an amount over $1,000.

E. A duly authorized agent's signature on behalf of his or her principal binds the principal and satisfies the signature requirement for negotiability only if the instrument is in an amount of $1,000 or less.

Answer

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