Question

Len makes a note payable to Melanie. Melanie indorses the back of the note and negotiates it to Nina Dress, Inc. Primarily liable on the note is: a. Len. b. Melanie. c. Nina Dress. d. none of the choices.

Answer 1

Answer:

Primarily liable on the note is:

• c. Nina Dress.

Explanation:

Notes payable, as well as checks, provide the possibility of paying with them simply by endorsing them to a person who is owed, so although the original sum comes from Len, at the time it was endorsed to Melanie it was her responsibility. This amount, later when she negotiated it with Nina Dress, Inc., possibly due to a debt or a purchase, became Nina Dress's possession.