Choice "B" is correct. The endorsement "Lee Louis" is blank because it does not name a new, specific endorsee, it is nonrestrictive because it does not have any words purporting to restrict further negotiation, and it is unqualified because it does not include the words, "without recourse."Choice "a" is incorrect. A qualified endorsement would include the words, "without recourse." Inclusion of these words means that the endorsee does not agree to be contractually liable on the instrument, but the endorsee still might have warranty liability.Choice "c" is incorrect. The endorsement is not special because a special endorsement includes the name of a new endorsee, such as "Pay John Smith /s/ Lee Louis."Choice "d" is incorrect. The endorsement is not special because a special endorsement includes the name of a new endorsee. Moreover, it is not qualified because it does not include the words, "without recourse."
