Choice "D" is correct. The last endorsement controls what is necessary for further negotiation. If the last endorsement is in blank, the instrument can be negotiated by delivery alone. If the last endorsement is special (i.e., it names a special endorsee), the special endorsee must sign to further negotiate the instrument. The last endorsement before Harris held the instrument was John Smith, and he signed in blank. Thus, Harris could have transferred the instrument without endorsing. UCC 3-204Choice "b" is incorrect. Parker's endorsement simply named a special endorsee (one who must sign to further negotiate the instrument). Such an endorsement does not destroy negotiability. UCC 3-204Choice "a" is incorrect. An endorsement cannot destroy negotiability. Whether an instrument is negotiable is determined by the face of the instrument. Harris's endorsement is a restrictive endorsement and restrictive endorsements do not destroy negotiability. UCC 205, 206Choice "c" is incorrect. Smith was a special endorsee and so his signature was required to further negotiate the instrument. He signed the instrument without naming any further special endorsee. Such a "blank" endorsement does not prevent further negotiation. UCC 3-204