Exam 24: Form and Content

The Revised Article 3 of the UCC provides that a check which meets all requirements of being a negotiable instrument, except that it is not payable to bearer or order, is nevertheless a negotiable instrument.

An incomplete instrument is not negotiable. However, when it is completed, it may become negotiable.

To have the full benefit of negotiability, negotiable instruments must:

An assignee of contractual rights acquires only the same rights as the assignor.

In the development of the law of negotiable instruments, which of the following was not a step?

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

Which article of the UCC governs "negotiable instruments"?

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

To be negotiable, the instrument must satisfy all except which one of the following requirements?

Which of the following would be an unconditional promise or order to pay?

An authorization to confess judgment on the instrument destroys its negotiability.

An instrument payable at a definite time is time paper.

A check is a draft payable on demand.

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

X signs a negotiable instrument ordering Y to pay Z the sum of $500. Y is the:

A cashier's check is a check drawn by a bank upon itself to the order of a named payee.

A signed promissory note stating "I promise to pay to Bonnie Ramcell $600 on December 15, 2014" is not covered by Article 3 of the UCC.

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

The court in Cooperative Centrale Raiffeisen-Boerenleenbank B.A. v. Bailey found:

Revised Article 1 of the UCC states that the "money" requirement for a negotiable instrument means the current official currency of the government, not just a medium of exchange authorized or adopted by a sovereign government as part of its currency.