18) It is assumed that a drawer or maker will recognize his or her own signature and that a maker or an acceptor will recognize whether an instrument has been materially altered. Therefore, with respect to any of these parties who in good faith accepts an instrument, in terms of presentment warranties, a. only the warranty that the person obtaining acceptance is entitled to enforce the instrument applies. b. all of them apply. c. only the warranties that the instrument has not been altered and that the person obtaining acceptance has no knowledge of an unauthorized signature apply. d. none of them apply.

19) Bravo co-signs a $15,000 note payable to College Loan Company enabling Dios to obtain a student loan. The terms of the note stated that Bravo signed on behalf of Dios. If Dios stops making payments on the debt, Bravo is a. primarily liable. b. not liable because Bravo signed on behalf of Dios. c. discharged from any obligation. d. secondarily liable.

20) Qita has the authority to issue checks on behalf of Retail Center. Qita creates a dozen unauthorized checks that she deposits in her account at State Bank. The payee line on each check is blank. In a suit between Retail Center and State Bank over the loss, the party or parties most likely to be held liable is a. none of the choices. b. Retail Center and State Bank, in prorated amounts. c. Retail Center. d. State Bank.

21) Liam, who is authorized to draw checks on Manufacturing Companys account, signs a check preprinted with the companys name with a signature that reads simply, Liam. On this check, Liam is a. proportionately liable. b. primarily liable. c. secondarily liable. d. not liable.

22) Gary writes a check drawn on Hill Bank for $400 payable to Ian on May 1. Gary dies on May 3. Ian presents the check to the bank on May 5. Unaware of Garys death, the bank a. must consult with Garys heirs before paying the check. b. can do nothing until Ian claims an interest in the account. c. must certify the check. d. may pay the check.