BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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primary liability
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secondary liability
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tertiary liability
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surety liability
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Detailed explanation-1: -Simply put, secondary liability is where one party assumes legal responsibility for the actions of another party. Secondary liability occurs when one party facilitates, materially contributes to, induces, or is in some other way responsible for the infringing acts performed by the another party.
Detailed explanation-2: -To hold a secondary party liable, the holder of the paper must (1) present the instrument for payment to the primary party in a proper and timely manner, (2) have the primary party dishonor the instrument, and (3) give timely notice of dishonor to the secondary party.
Detailed explanation-3: -The drawer of a draft drawn on a bank or other party is only “secondarily” liable on the instrument. Someone other than the drawer is expected to pay. The holder must make an attempt to collect elsewhere before the drawer must pay.
Detailed explanation-4: -Secondary Liability: A contingent requirement to pay a negotiable instrument upon dishonor or the failure to pay or accept by the party(-ies) primarily liable for the instrument.