Question 1

Forgery is a valid defense against a holder in due course.

Accepted Answer

A) True 
 B)False

Question 2

Sprock is a holder in due course on an instrument issued by a Klingon.Which of the following defenses could be successfully raised by the Klingon?

Accepted Answer

A) Forgery. 
B) Prior payment. 
C) Breach of contract. 
D) Fraud in the inducement. 
A) Forgery. 
B) Prior payment. 
C) Breach of contract. 
D) Fraud in the inducement.

Question 3

Kent Weston wrote a check for $500 payable to the order of Chester Jones.Chester indorsed the back of the check as follows: "Chester Jones." The check is now:

Accepted Answer

A) order paper. 
B) bearer paper. 
C) a cashier's check. 
D) special paper. 
A) order paper. 
B) bearer paper. 
C) a cashier's check. 
D) special paper.

Question 4

Which of the following would be notice of an overdue instrument?

Accepted Answer

A) Taking a demand instrument after a request for payment is made. 
B) Taking an instrument one day after the due date. 
C) Taking a check 91 days after its issue date. 
D) All of the above illustrate overdue instruments. 
A) Taking a demand instrument after a request for payment is made. 
B) Taking an instrument one day after the due date. 
C) Taking a check 91 days after its issue date. 
D) All of the above illustrate overdue instruments.

Question 5

To be negotiated,bearer paper must simply be delivered.

Accepted Answer

A) True 
 B)False

Question 6

In June,The Seascape Gallery sells an oil painting to Collegiate Systems,Inc.Collegiate promises to pay for the painting in three months.The gallery prepares a draft ordering Collegiate Systems to pay $3,000 to First Bank on September 15.Collegiate Systems signs the draft.The draft is a:

Accepted Answer

A) sight draft. 
B) time draft. 
C) trade acceptance. 
D) Both b and c. 
A) sight draft. 
B) time draft. 
C) trade acceptance. 
D) Both b and c.

Forgery is a valid defense against a holder in due course.

Sprock is a holder in due course on an instrument issued by a Klingon.Which of the following defenses could be successfully raised by the Klingon?

Kent Weston wrote a check for $500 payable to the order of Chester Jones.Chester indorsed the back of the check as follows: "Chester Jones." The check is now:

Which of the following would be notice of an overdue instrument?

To be negotiated,bearer paper must simply be delivered.

In June,The Seascape Gallery sells an oil painting to Collegiate Systems,Inc.Collegiate promises to pay for the painting in three months.The gallery prepares a draft ordering Collegiate Systems to pay $3,000 to First Bank on September 15.Collegiate Systems signs the draft.The draft is a:

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

Agreement

Consideration

Legality

Capacity and Consent

Written Contracts

Third Parties

Performance and Discharge

Remedies

Introduction to Sales

Ownership and Risk

Warranties and Product Liability

Performance and Remedies

Liability for Negotiable Instruments

Liability for Negotiable Instruments: Banks and Their Customers

Secured Transactions

Bankruptcy

Agency

Employment Law

Starting a Business: Llcs and Other Options

Corporations

Securities Regulation

Property

Cyberlaw

Intellectual Property

Filters

Exam 22: Creating a Negotiable Instrument

Forgery is a valid defense against a holder in due course.

Sprock is a holder in due course on an instrument issued by a Klingon.Which of the following defenses could be successfully raised by the Klingon?

Kent Weston wrote a check for $500 payable to the order of Chester Jones.Chester indorsed the back of the check as follows: "Chester Jones." The check is now:

Which of the following would be notice of an overdue instrument?

To be negotiated,bearer paper must simply be delivered.

In June,The Seascape Gallery sells an oil painting to Collegiate Systems,Inc.Collegiate promises to pay for the painting in three months.The gallery prepares a draft ordering Collegiate Systems to pay $3,000 to First Bank on September 15.Collegiate Systems signs the draft.The draft is a:

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

Agreement

Consideration

Legality

Capacity and Consent

Written Contracts

Third Parties

Performance and Discharge

Remedies

Introduction to Sales

Ownership and Risk

Warranties and Product Liability

Performance and Remedies

Liability for Negotiable Instruments

Liability for Negotiable Instruments: Banks and Their Customers

Secured Transactions

Bankruptcy

Agency

Employment Law

Starting a Business: Llcs and Other Options

Corporations

Securities Regulation

Property

Cyberlaw

Intellectual Property

Filters