Question 1

An oral stop payment order is valid for ___________;a written order is valid for ____________.

Accepted Answer

A)  seven days; six weeks 
B)  14 days; three months 
C)  14 days; six months 
D)  30 days; one year 
A)  seven days; six weeks 
B)  14 days; three months 
C)  14 days; six months 
D)  30 days; one year

Question 2

A "holder" of order paper can best be described as:

Accepted Answer

A)  the payee. 
B)  any person in possession of the instrument. 
C)  any person in possession of the instrument if it is payable to or indorsed to her. 
D)  the first party to come in contact with a negotiable instrument. 
A)  the payee. 
B)  any person in possession of the instrument. 
C)  any person in possession of the instrument if it is payable to or indorsed to her. 
D)  the first party to come in contact with a negotiable instrument.

Question 3

Which of the following can be negotiable?

Accepted Answer

A)  A promissory note that states, "Pay to Luis Calvillo $500 on September 30, 2013. " 
B)  A check written on the standard check form that does not state the date it was issued. 
C)  A promissory note from Howard to Hainey Feed & Seeds, Inc. promising to pay for the seed purchased in the spring with bushels of grain harvested in the fall. 
D)  An oral promise to pay to the order of Manny $800 on demand. 
A)  A promissory note that states, "Pay to Luis Calvillo $500 on September 30, 2013. " 
B)  A check written on the standard check form that does not state the date it was issued. 
C)  A promissory note from Howard to Hainey Feed & Seeds, Inc. promising to pay for the seed purchased in the spring with bushels of grain harvested in the fall. 
D)  An oral promise to pay to the order of Manny $800 on demand.

Question 4

Which of the following would prevent Marcel from being a holder in due course?

Accepted Answer

A)  A check written on April 14 is indorsed to Marcel on August 1. 
B)  A check written on April 14 is indorsed to Marcel on June 2. 
C)  Marcel knows there is a dispute between the original parties to the instrument. 
D)  All of the above. 
E)  Only (a) and (c). 
A)  A check written on April 14 is indorsed to Marcel on August 1. 
B)  A check written on April 14 is indorsed to Marcel on June 2. 
C)  Marcel knows there is a dispute between the original parties to the instrument. 
D)  All of the above. 
E)  Only (a) and (c).

Question 5

Thomas received his March checking account statement and then his April statement,but he failed to reconcile these statements with his bank records.The bank statements included a list of check numbers,amounts and dates of payment,but not the canceled checks.Unbeknownst to Thomas,Brian had been stealing blank checks,forging Thomas's name,and passing the checks as payment for goods and services during the months of March and April.The bank was not careless in paying the checks.When Thomas got his May monthly bank statement,he examined the statements for all three months.It was then he realized that his account balance showed $2000 less than what it should,and he began to investigate.If Thomas sues the bank for total reimbursement for the forged checks,Thomas will:

Accepted Answer

A)  lose because Thomas did not report the forgeries within 30 days of receiving his monthly bank statements. 
B)  win because the bank did not send him the canceled checks. 
C)  win because the bank paid a check on which Thomas's name was forged. 
D)  win because this is a breach of contract by the bank. 
A)  lose because Thomas did not report the forgeries within 30 days of receiving his monthly bank statements. 
B)  win because the bank did not send him the canceled checks. 
C)  win because the bank paid a check on which Thomas's name was forged. 
D)  win because this is a breach of contract by the bank.

An oral stop payment order is valid for _;a written order is valid for __.

A "holder" of order paper can best be described as:

Which of the following can be negotiable?

Which of the following would prevent Marcel from being a holder in due course?

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Exam 13: Negotiable Instruments and Banks

An oral stop payment order is valid for ___________;a written order is valid for ____________.

A "holder" of order paper can best be described as:

Which of the following can be negotiable?

Which of the following would prevent Marcel from being a holder in due course?

Introduction to Law

Business Ethics and Social Responsibility

Dispute Resolution

Common Law, statutory Law, and Administrative Law

Constitutional Law

Torts

Crime

International Law

Introduction to Contracts

Legality, consent, and Writing

Conclusion to Contracts

Sales and Product Liability

Secured Transactions and Bankruptcy

Agency

Employment Law

Labor Law

Starting a Business: Llcs and Other Options

Corporations

Securities Regulation

Antitrust

Cyberlaw

Intellectual Property

Property

Consumer Law

Environmental Law

Filters

An oral stop payment order is valid for _;a written order is valid for __.