Exam 21: Liability, Defenses, and Discharge

When does a person have a right to demand payment on a negotiable instrument, such as a check?

Which of the following is not a valid reason for a drawee bank to dishonor a check presented to it?

At some point in his career, the musician, Prince, only referred to himself as a symbol and signed all of his checks in that manner rather than his legal name, Prince Rogers Nelson. If he signed a check with the symbol, rather than his legal name, would that check have been enforceable?

When a negotiable instrument expires is called

In anticipation of going off to college, 17 year old Emily opened a checking account at a bank and deposited all of her high school graduation money she received as gifts. She then wrote a check to her friend Tracy. Tracy went to cash the check but found that Emily had contacted the bank to tell them that she did not want the bank to honor the check. What, most likely, would be the outcome of the issue?

No discharge of any party operates against a subsequent holder in due course unless he has notice when she takes the instrument.

The UCC allows a signature to be any mark affixed to the instrument with the intention to authenticate a writing.

Becca pays Shelby for babysitting with a check. When Shelby takes the check to the bank to cash it, that process is called

Liability for the amount of the instrument as soon as it is issued and required to be paid as soon as the instrument is presented for payment is

Monica Stewart attempts to write out a check at the local store for the purchase of goods. However, at the time she attempts to sign the check, her children run off and she is only able to sign an "M" but no other letters of her name. Will the store be able to cash the check with only the "M" on it?

In the case Messing v. Bank of America, the court ruled

Larry, the owner of Shoe Industries, employs 100 people. Recently, he broke his hand and therefore, when payday came, he felt he was not able to sign all of the checks and asked his employee, Daryl, to sign the checks. Will these instruments be enforceable?

In the case National Metropolitan Bank v. United States, the U.S Supreme Court determined

Explain and give examples of four ways a negotiable instrument is discharged.

A person presenting a check asserts by law that he is the legitimate owner of the check, that the check has not been altered in any way and the presenter has no reason to believe that the drawee's signature is forged.

The __________ is the one who signs the check, with the proper authority to sign it and thus becomes liable to when it becomes due.

All of the following are implied transfer warranties except

Mike takes a check to Sunshine Bank to cash it. In doing so by operation of law he is making certain guarantees that are called

In the case, Affiliated Health Group v. Healthcare Services Corp., the court ruled

Ellen stops by a garage sale and falls in love with a painting but does not have any cash on her. Ellen only has a check written out to her by Rob. Unknown to Ellen, Rob's signature was forged on the check. In good faith, Ellen endorses the check and gives it to the person at the garage sale in exchange for the painting. When the person who had the garage sale attempts to cash the check, the bank refused to cash it, stating that it is a forged check. In the above situation who would be liable for the value of the check?