1. An indorser's implied contract to pay a subsequent holder in the event that an instrument is dishonored is known as an indorser's

A. duty
B. accommodation
C. primary liability
D. secondary liability

I chose C.

2. A defense that arises out of some improper act or omission by a party to the instrument is a _________ defense
A. personal
B. real
C. secondary
D. primary

I chose A.

It's endorser, not indorser. And you are incorrect on question 1 and on question 2.

For Question 1, the correct answer is D. secondary liability.

To determine the answer, you need to understand the concept of dishonored instruments and the responsibilities of indorsers.

When an individual becomes an indorser of an instrument, such as a check or promissory note, they are essentially guaranteeing the payment of the instrument. Should the instrument be dishonored, meaning it is not paid, the indorser would be responsible for paying the subsequent holder of the instrument.

In this context, the implied contract between the indorser and the subsequent holder is known as secondary liability. This means that the indorser is only liable to pay if the primary party obligated to pay, such as the maker or drawer of the instrument, fails to do so.

Therefore, the correct answer is D. secondary liability.

For Question 2, the correct answer is A. personal defense.

To determine the answer, you need to understand the concept of defenses in relation to negotiable instruments.

A defense in the context of negotiable instruments refers to a legal reason or justification that can be used to avoid the enforcement of an instrument or to reduce the liability of a party. Defenses can be divided into two categories: personal defenses and real defenses.

Personal defenses are those defenses that arise out of improper acts or omissions of a party to the instrument. In other words, they are defenses that relate specifically to the actions or conduct of the party asserting the defense.

Real defenses, on the other hand, are defenses that can be asserted by any party, regardless of their direct involvement in the instrument. These defenses are based on the inherent nature of the instrument itself, such as forgery, fraud, or incapacity.

Since the question specifically refers to a defense arising from an improper act or omission by a party, the correct answer is A. personal defense.