Question 1

Discuss the effect of an unauthorized signature on an instrument.

Accepted Answer

Unauthorized signatures include both for

Question 2

When a severe weather warning has been declared, a delay in notice is excused to the holder who was prevented from giving the notice until after the severe weather passed.

Accepted Answer

A) True 
 B)False

Question 3

All of the following except which one are warranted by the transferor of a negotiable instrument?

Accepted Answer

A)  The instrument is not subject to a defense. 
B)  The transferor has no knowledge of a material alteration. 
C)  All signatures are authentic and authorized. 
D)  Transferor has no knowledge of insolvency proceedings instituted with respect to the maker or drawer. 
A)  The instrument is not subject to a defense. 
B)  The transferor has no knowledge of a material alteration. 
C)  All signatures are authentic and authorized. 
D)  Transferor has no knowledge of insolvency proceedings instituted with respect to the maker or drawer.

Question 4

Robert's payroll check was made payable "to the order of Robert Lewis." Robert deposited, but never indorsed, the check in ABC bank. Robert has no warranty liability on the check because his signature is not on the instrument.

Accepted Answer

A) True 
 B)False

Question 5

A demand note is dishonored if the maker does not pay it:

Accepted Answer

A)  on the day of presentment. 
B)  before midnight of the day following presentment. 
C)  within three days of presentment. 
D)  within ten days of presentment. 
A)  on the day of presentment. 
B)  before midnight of the day following presentment. 
C)  within three days of presentment. 
D)  within ten days of presentment.

Question 6

A drawee bank is primarily liable after it accepts the check.

Accepted Answer

A) True 
 B)False

Question 7

An indorser is discharged if a check is not presented for payment or given to a depositary bank for collection within days of the indorsement.

Accepted Answer

A)  ten 
B)  fourteen 
C)  thirty 
D)  ninety 
A)  ten 
B)  fourteen 
C)  thirty 
D)  ninety

Question 8

Failure to give notice of dishonor will discharge the drawer from having to pay on the instrument.

Accepted Answer

A) True 
 B)False

Exam 28: Liability of Parties

Discuss the effect of an unauthorized signature on an instrument.

When a severe weather warning has been declared, a delay in notice is excused to the holder who was prevented from giving the notice until after the severe weather passed.

All of the following except which one are warranted by the transferor of a negotiable instrument?

Robert's payroll check was made payable "to the order of Robert Lewis." Robert deposited, but never indorsed, the check in ABC bank. Robert has no warranty liability on the check because his signature is not on the instrument.

A demand note is dishonored if the maker does not pay it:

A drawee bank is primarily liable after it accepts the check.

An indorser is discharged if a check is not presented for payment or given to a depositary bank for collection within days of the indorsement.

Failure to give notice of dishonor will discharge the drawer from having to pay on the instrument.

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

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Form and Content

Transfer and Holder in Due Course

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Nature, Formation, and Powers

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Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

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Employment Law

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Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

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the Legal Environment of Business

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Negotiable Instruments

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