Exam 26: Form and Content

Akeya sells and delivers goods to Wayne for $10,000.Wayne executes and delivers a negotiable note to Akeya for $10,000 payable to Akeya's order in sixty days.A week later,Akeya duly negotiates the note to Maria.Which of the following is correct?

Handwritten words supersede contradicting typewritten words in negotiable instruments.

Distinguish between a note and a certificate of deposit.How are they alike? How are they different? Explain your answer.

Which of the following is true of the "order to pay" requirement of a negotiable instrument?

A draft is payable "to the order of Joe Jones or to bearer." Sally finds it and demands payment.Should the drawer pay Sally?

If Lake writes a check drawn on his account at Southern Bank to Emerson University to pay his tuition:

A check is a draft payable on demand.

The drawee is the individual who signs a check and promises to pay.

Which of the following would be a bearer instrument?

A definite time required for negotiability would NOT be satisfied in which instance?

An "X" or a thumbprint could constitute a signature under the Code.

The person who signs a note and promises to pay it is the maker.

The Code provides that which of the following provisions may be included in an instrument without adversely affecting negotiability?

Javon signed a 90-day note promising to pay $1,000 plus interest.The note states interest is to be based on a variable published rate external to the note.The sum the borrower must repay is uncertain;therefore,under Revised Article 3,the note is not negotiable.

A time draft is one payable upon demand (at the time it is presented to the drawee).

Where both words and numerals are used to describe the amount payable,the numerals will be used to resolve any differences.

Payment to a named payee by a bank with a check drawn on itself is a:

All but which of the following is required of a negotiable instrument?

Under the law of assignments,the assignee stands in the shoes of the assignor.

Which of the following is not a reason for the use of negotiable instruments?