Like secondary signature liability, warranty liability is subject to the conditions of proper presentment, dishonor, and notice of dishonor.

Secondary Signature Liability

The legal responsibility of a party who signs a document on behalf of another party, potentially being held liable under certain conditions.

Warranty Liability

An obligation that arises from a warranty, where the issuer must repair or replace defective products or parts according to the terms of the warranty.

Notice Of Dishonor

A formal notification that a negotiable instrument, like a check or promissory note, has been presented for payment and refused.