Paris negotiated the note by delivery to Germany, Germany to Italy, and Italy to Switzerland. Germany had known that Paris was bankrupt when Paris issued the note. Who would be liable to Switzerland?

Business Its Legal Ethical & Global Environment
10th Edition
ISBN:9781305224414
Author:JENNINGS
Publisher:JENNINGS
Chapter7: International Law
Section: Chapter Questions
Problem 10QAP
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Paris makes a promissory note that states: "Paris, Luxembourg, promise to pay Php8,000.00 to Germany or bearer. Signed, Paris." Paris negotiated the note by delivery to Germany, Germany to Italy, and Italy to Switzerland. Germany had known that Paris was bankrupt when Paris issued the note. Who would be liable to Switzerland?
 
a. Paris and Luxembourg since they may be assumed to know of Paris’ bankruptcy
b. Germany, Paris and Luxembourg, being indorsers by delivery of a bearer note
c. Italy, being Switzerland's immediate negotiator of a bearer note
d. Germany, having known of Paris' bankruptcy
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