Practice Endorser (5.2.4) - Bills of Exchange

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9 questions

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2 cards from this section. Quick, good the night before a test.
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3 questions · about 2 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What is an endorser in a bill of exchange?
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Think about who initially holds the rights before transferring them.
Question 2.
Who becomes the endorsee after a bill is endorsed?
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Consider who receives the rights from the endorser.
3Question 3.
What is the primary role of an endorser?
- To pay the drawee
- To transfer payment rights
- To negotiate the bill
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Think about what action they take concerning the bill.
4Question 4.
True or False: An endorser is completely free from responsibility if the drawee defaults.
- True
- False
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Consider the obligations an endorser has.
Question 5.
A corporation issues a bill of exchange but has financial issues. If it goes bankrupt and the endorsee seeks payment, what liabilities do the endorser face?
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Consider the endorser's obligation when dealing with credit risks.
Question 6.
Propose strategies an endorser can take to minimize risks when transferring a bill of exchange.
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Think about how due diligence may affect the endorsement decision.

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