Question 1

A negotiable promissory note must contain

Accepted Answer

A)  a date. 
B)  the letters IOU. 
C)  the words value received. 
D)  words indicating a promise to pay. 
A)  a date. 
B)  the letters IOU. 
C)  the words value received. 
D)  words indicating a promise to pay.

Question 2

Today check processing is done electronically. Consequently a check written on any one day and passed on to the bank can now be deducted from your account that same day.

Accepted Answer

A) True 
 B)False

Question 3

A promissory note payable "on the day of the next presidential election" is

Accepted Answer

A)  nonnegotiable. 
B)  unenforceable. 
C)  void. 
D)  negotiable. 
A)  nonnegotiable. 
B)  unenforceable. 
C)  void. 
D)  negotiable.

Question 4

For an instrument to be negotiable it must

Accepted Answer

A)  contain the word order or bearer. 
B)  be written. 
C)  contain the date the instrument was prepared. 
D)  contain the word order or bearer and be written. 
A)  contain the word order or bearer. 
B)  be written. 
C)  contain the date the instrument was prepared. 
D)  contain the word order or bearer and be written.

Question 5

A check is always payable on demand.

Accepted Answer

A) True 
 B)False

Question 6

A promissory note is not negotiable if it is

Accepted Answer

A)  not dated. 
B)  payable thirty days after the death of the maker. 
C)  signed by having the signature typed on the note. 
D)  payable thirty days after the date of the note. 
A)  not dated. 
B)  payable thirty days after the death of the maker. 
C)  signed by having the signature typed on the note. 
D)  payable thirty days after the date of the note.

Question 7

What is the importance of placing the words "order" or "bearer" on an instrument?

Accepted Answer

The words "order" or "bearer" allow the

Question 8

If an instrument contains an order or promise to do anything else in addition to the payment of money, it will not be ____________________.

Accepted Answer

The answer of If an instrument contains an order or...

Question 9

A draft made out in the United States calls for payment in German marks. Which of the following statements is correct?

Accepted Answer

A)  The draft is nonnegotiable since it must be paid in German marks. 
B)  The draft is nonnegotiable because the rate of exchange fluctuates and it will interfere with the requirement that the instrument be payable in a fixed sum of money. 
C)  The draft is negotiable if it satisfies all the requirements of negotiability under Article 3 of the UCC. 
D)  The instrument is negotiable only if the exchange rate is written on the draft. 
A)  The draft is nonnegotiable since it must be paid in German marks. 
B)  The draft is nonnegotiable because the rate of exchange fluctuates and it will interfere with the requirement that the instrument be payable in a fixed sum of money. 
C)  The draft is negotiable if it satisfies all the requirements of negotiability under Article 3 of the UCC. 
D)  The instrument is negotiable only if the exchange rate is written on the draft.

Question 10

A form of time draft called a(n) ____________________ is used by a seller as a credit device.

Accepted Answer

The answer of A form of time draft called a(n)...

Exam 19: Nature and Types of Negotiable Instruments

A negotiable promissory note must contain

Today check processing is done electronically. Consequently a check written on any one day and passed on to the bank can now be deducted from your account that same day.

A promissory note payable "on the day of the next presidential election" is

For an instrument to be negotiable it must

A check is always payable on demand.

A promissory note is not negotiable if it is

What is the importance of placing the words "order" or "bearer" on an instrument?

If an instrument contains an order or promise to do anything else in addition to the payment of money, it will not be ____________________.

A draft made out in the United States calls for payment in German marks. Which of the following statements is correct?

A form of time draft called a(n) ____________________ is used by a seller as a credit device.

Foundations of Law and the Role of Ethics in Business

The Legal System in the United States and Its Constitutional Foundation

Personal, Business, and Cyber Crimes and the American Criminal Justice System

Tort Law: Traditional Torts and Cyber Torts

Litigation and Alternatives for Settling Civil Disputes

Contract Law: a Beginning

Agreement: Offer and Acceptance

Consideration

Capacity

Legality

Memorialize Contracts in Writingstatute of Frauds

Transfer of Contract Rights and Duties

The Termination of Contracts: Discharge

The Termination of Contracts: Breach of Contract

Formation of Sales and Lease Contracts

The Sales Contract: Transfer of Title and Risk of Loss

The Sales Contract: Performance, Breach, and Remedies for Breach

Product Liability Law

Issue, Transfer, Indorsement, and Discharge of Negotiable Instruments

Rights and Duties of Parties

Checks and the Banking System in the Twenty-First Century

Employer-Employee Relationship

Principal-Agent Relationship

Principal-Agent, Employer-Employee, and Third-Party Relationships

Sole Proprietorships, Partnerships, and Limited Liability Organizations

Corporations and Franchising

Government Regulation of Business

Basic Legal Concepts of Property

Renting Real Property

Buying and Selling Real Property

Nature and Types of Bailments

Wills, Intestacy, and Estate Planning

Protecting the Consumer and the Taxpayer

Protecting the Borrower

Protecting the Creditor

Property, Casualty and Automobile Insurance

Personal Insurance

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