Question

Jack receives a check from Kappa Company and indorses it "without recourse." This indorsement is:______.a. a blank indorsement.

b. a qualified indorsement.
c. a restrictive indorsement.
d. a special indorsement.

Answer 1

b. a qualified indorsement.

Step-by-step explanation:

Jack receives a check from Kappa Company and indorses it "without recourse." This indorsement is known as a "qualified indorsement".

In a qualified indorsement, the liability is usually disclaimed by the indorser when a phrase is added preceding the signature.

The qualified indorsement gives the indorser the ability to include "without recourse" which eventually relieves the indorser of any payment responsibility. During settlement of claims, Attorneys who collect checks from their clients usually sign using "qualified endorsements"