Question 1

The UCC defines as "the first delivery of an instrument by the maker or drawer for the purpose of giving rights on the instrument to any person."

Accepted Answer

A) possession 
B) negotiation 
C) issue 
D) transfer 
A) possession 
B) negotiation 
C) issue 
D) transfer C

Question 2

A negotiable instrument must be in writing and signed by the party executing it. ​

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following is an unconditional promise to pay? I will pay you    :

Accepted Answer

A) When I sell my car. 
B) In two weeks if the goods are not defective. 
C) W henever I have sufficient funds in my account. 
D) On Tuesday. 
A) When I sell my car. 
B) In two weeks if the goods are not defective. 
C) W henever I have sufficient funds in my account. 
D) On Tuesday. D

Question 4

A holder in due course can enforce paper according to filled-in terms even when the terms were not authorized.

Accepted Answer

A) True 
 B)False

Question 5

An instrument executed with a lead pencil does not meet the legal requirements of negotiability.

Accepted Answer

A) True 
 B)False

Question 6

Who can enforce a negotiable instrument which was only partially filled in and signed before delivery?

Accepted Answer

A) An original payee may enforce the paper regardless of what is filled in the blanks. 
B) A transferee may enforce the paper according to the filled-in terms. 
C) An assignee may enforce the paper according to the filled-in terms. 
D) A holder in due course may enforce the paper according to the filled-in terms 
A) An original payee may enforce the paper regardless of what is filled in the blanks. 
B) A transferee may enforce the paper according to the filled-in terms. 
C) An assignee may enforce the paper according to the filled-in terms. 
D) A holder in due course may enforce the paper according to the filled-in terms

Question 7

The language used in a promissory note must show that a promise is intended.

Accepted Answer

A) True 
 B)False

Question 8

If the choice of whether an instrument is payable in either cash or goods is left up to the holder, the instrument is not negotiable.

Accepted Answer

A) True 
 B)False

Question 9

Whenever delivery is made in connection with the original issue, it must be unconditional.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true of a check made out to the order of a person?

Accepted Answer

A) The drawee can deposit the check after its validity expires. 
B) The drawee can only deposit the check into his own account. 
C) The drawee cannot indorse the check to anyone else. 
D) The drawee can encash the check at the appropriate bank. 
A) The drawee can deposit the check after its validity expires. 
B) The drawee can only deposit the check into his own account. 
C) The drawee cannot indorse the check to anyone else. 
D) The drawee can encash the check at the appropriate bank.

Question 11

An order or promise in a negotiable instrument must be conditional.

Accepted Answer

A) True 
 B)False

Question 12

When a negotiable instrument is payable to order, the payee need not be named.

Accepted Answer

A) True 
 B)False

Question 13

In order to be negotiable, an instrument must comply with the standard legal forms.

Accepted Answer

A) True 
 B)False

Question 14

The name of the place where an instrument was drawn need not be specified.

Accepted Answer

A) True 
 B)False

Question 15

Explain the requirements of negotiability. ​

Accepted Answer

An instrument must comply with seven req

Question 16

Which of the following is a requirement of negotiability? ​

Accepted Answer

A) The payee and the drawee need not be designated. 
B) The instrument must be in writing and signed by the party executing it. 
C) The instrument must provide for the payment of a flexible amount of money. 
D) The order or the promise in the instrument must be conditional. 
A) The payee and the drawee need not be designated. 
B) The instrument must be in writing and signed by the party executing it. 
C) The instrument must provide for the payment of a flexible amount of money. 
D) The order or the promise in the instrument must be conditional.

Question 17

Jim agreed to pay Jose $1,000 by check, provided he is able to sell his farm. However, he did not mention the number of days it would take for him to sell the farm nor did he provide a contingency date. Which of the following is legally permissible in this scenario?

Accepted Answer

A) Jose can take possession of Jim's farm as repayment. 
B) Jim's promise to pay is valid as he has offered Jose the money. 
C) Jim can write and deliver a check to Jose for $1,000 but he cannot cash the check until Jim sells the farm. 
D) Jim's promise to pay is conditional and therefore Jose should obtain a negotiable instrument. 
A) Jose can take possession of Jim's farm as repayment. 
B) Jim's promise to pay is valid as he has offered Jose the money. 
C) Jim can write and deliver a check to Jose for $1,000 but he cannot cash the check until Jim sells the farm. 
D) Jim's promise to pay is conditional and therefore Jose should obtain a negotiable instrument.

Question 18

Which of the following describes paper payable to order?

Accepted Answer

A) pay to the order of Hill 
B) pay to the order of cash 
C) pay to the order of bearer 
D) pay to Jalen or bearer 
A) pay to the order of Hill 
B) pay to the order of cash 
C) pay to the order of bearer 
D) pay to Jalen or bearer

Question 19

The sum payable in a negotiable instrument cannot be dependent on future profits.

Accepted Answer

A) True 
 B)False

Question 20

If the choice of whether an instrument is payable in either cash or goods is left up to the holder, the instrument is not negotiable.

Accepted Answer

A) True 
 B)False

Exam 21: Essentials of Negotiability

The UCC defines as "the first delivery of an instrument by the maker or drawer for the purpose of giving rights on the instrument to any person."

A negotiable instrument must be in writing and signed by the party executing it. ​

Which of the following is an unconditional promise to pay? I will pay you :

A holder in due course can enforce paper according to filled-in terms even when the terms were not authorized.

An instrument executed with a lead pencil does not meet the legal requirements of negotiability.

Who can enforce a negotiable instrument which was only partially filled in and signed before delivery?

The language used in a promissory note must show that a promise is intended.

If the choice of whether an instrument is payable in either cash or goods is left up to the holder, the instrument is not negotiable.

Whenever delivery is made in connection with the original issue, it must be unconditional.

Which of the following is true of a check made out to the order of a person?

An order or promise in a negotiable instrument must be conditional.

When a negotiable instrument is payable to order, the payee need not be named.

In order to be negotiable, an instrument must comply with the standard legal forms.

The name of the place where an instrument was drawn need not be specified.

Explain the requirements of negotiability. ​

Which of the following is a requirement of negotiability? ​

Jim agreed to pay Jose $1,000 by check, provided he is able to sell his farm. However, he did not mention the number of days it would take for him to sell the farm nor did he provide a contingency date. Which of the following is legally permissible in this scenario?

Which of the following describes paper payable to order?

The sum payable in a negotiable instrument cannot be dependent on future profits.

If the choice of whether an instrument is payable in either cash or goods is left up to the holder, the instrument is not negotiable.

Introduction to Law

Courts and Court Procedures

Business Torts and Crimes

Government Regulation of Business

Nature and Classes of Contracts

Offer and Acceptance

Capacity to Contract

Consideration

Defective Agreements

Illegal Agreements

Written Contracts

Third Parties and Contracts

Termination of Contracts

Nature of Personal Property

Special Bailments

Sales of Personal Property

Formalities of a Sale

Transfer of Title and Risk in Sales Contracts

Warranties Product Liability and Consumer Protection

Nature of Negotiable Instruments

Promissory Notes and Drafts

Negotiation and Discharge

Liabilities of Parties, Holders in Due Course and Defenses

Nature and Creation of an Agency

Operation and Termination of an Agency

Employer and Employee Relations

Employees Rights

Introduction to Business Organizations

Creation and Operation of a Partnership

Dissolution of a Partnership

Nature of a Corporation

Ownership of a Corporation

Management and Dissolution of a Corporation

Principles of Insurance

Types of Insurance

Security Devices

Bankruptcy

Nature of Real Property

Transfer of Real Property

Real Estate Mortgages

Landlord and Tenant

Wills Inheritances and Trust

Filters

A negotiable instrument must be in writing and signed by the party executing it.

Explain the requirements of negotiability.

Which of the following is a requirement of negotiability?