Commercial Law, 2011 Bar — Question 9

MULTIPLE CHOICE

Under the Negotiable Instruments Law, a signature by procuration operates as a notice that the agent has but a limited authority to sign. Thus, a person who takes a bill that is drawn, accepted, or indorsed by procuration is duty-bound to inquire into the extent of the agent's authority by: A) examining the agent’s special power of attomey. B) examining the bill to determine the extent of such authority. C) asking the agent about the extent of such authority. D) asking the principal about the extent of such authority.

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