Question

Highlight the two categories of when warranties arise with negotiable instruments. Highlight the complete word(s) or phrase(s), including any punctuation. Click here for a tutorial on how to complete a Highlighting Question.

Answer 1

The two categories of when warranties arise with negotiable instruments are the categories of signature liability and warranty liability.

Explanation:

• Signature liability is the category in which the person in whose custody the negotiable instrument is, is liable for the instrument if his signature appears on the instrument.
• Warranty liability is the category in which the company issuing the negotiable instrument is responsible for the coverage of the warranty of the instrument.