Liability and Disciplinary Actions Flashcards
6 cards from real NC NOTARY practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Liability and Disciplinary Actions flashcards as text
A NC employer directs a notary-employee to notarize documents without requiring signers to appear in person. If the notary complies, which of the following is true?
Answer: The notary remains personally liable for violating the personal appearance requirement
A NC notary cannot escape liability for statutory violations by following employer instructions. The notary is personally responsible for ensuring compliance with Chapter 10B, including the requirement that signers appear in person (for traditional notarizations).
Under NCGS Chapter 10B, which of the following would most likely result in criminal charges against a NC notary?
Answer: Notarizing a document while knowing the signer's signature was forged
Knowingly notarizing a forged signature constitutes fraud under NCGS §10B-60 and could result in felony charges. The other options are violations but would more likely result in civil penalties or commission disciplinary action.
A person harmed by a NC notary's misconduct wants to recover damages. Which of the following provides the most direct source of compensation?
Answer: A claim against the notary's $10,000 surety bond
The $10,000 surety bond required by NCGS §10B-8 exists specifically to compensate members of the public who suffer financial harm due to a notary's misconduct. A claim against the bond is the most direct compensation mechanism.
Under NCGS Chapter 10B, which type of complaint initiates a disciplinary investigation of a NC notary?
Answer: Written complaints filed with the NC Secretary of State or initiated by the SOS on its own motion
Under NCGS §10B-60, disciplinary proceedings against a NC notary may be initiated by a written complaint filed with the NC Secretary of State or by the SOS on its own motion based on information received. Any person may file a complaint.
A NC notary's surety bond is paid out to cover a claim from an injured party. What is the notary's obligation to the surety company?
Answer: The notary must reimburse the surety company for the amount paid on the claim
A surety bond is not insurance. When the surety company pays a claim, they are entitled to seek reimbursement (indemnification) from the notary who caused the loss. The notary ultimately bears the financial responsibility.
Under NC law, unauthorized practice of law by a NC notary most commonly occurs when the notary:
Answer: Tells a signer what type of notarization is needed for a specific document without legal training
A NC notary who advises a signer about which type of legal document they should use or which notarization a particular document legally requires is potentially engaging in the unauthorized practice of law — a serious violation.