Question 1

An "I.O.U." is a negotiable instrument.

Accepted Answer

A) True 
 B)False  False

Question 2

Which of the following is not a negotiable instrument?

Accepted Answer

A) A check. 
B) A draft. 
C) A certificate of deposit. 
D) A stock certificate. 
A) A check. 
B) A draft. 
C) A certificate of deposit. 
D) A stock certificate. D

Question 3

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

Accepted Answer

A) drawee. 
B) maker. 
C) payee. 
D) drawer. 
A) drawee. 
B) maker. 
C) payee. 
D) drawer. A

Question 4

Negotiability is wholly a matter of form.

Accepted Answer

A) True 
 B)False

Question 5

Distinguish between a note and a certificate of deposit.How are they alike? How are they different? Explain your answer.

Accepted Answer

Notes and CD's are two-party instruments

Question 6

Which of the following has been held to destroy the negotiability of an instrument and to render its transfer a contractual assignment?

Accepted Answer

A) "I wish you would pay." 
B) "Pay to the order of John Jones." 
C) "Pay bearer." 
D) None of the above. 
A) "I wish you would pay." 
B) "Pay to the order of John Jones." 
C) "Pay bearer." 
D) None of the above.

Question 7

The particular fund doctrine is:

Accepted Answer

A) merely an instruction to pay the instrument. 
B) an undertaking to pay, which must be more than acknowledgment of an existing debt. 
C) more important under Revised Article 3 than under the prior Article 3. 
D) an order or promise to pay only out of a particular fund. 
A) merely an instruction to pay the instrument. 
B) an undertaking to pay, which must be more than acknowledgment of an existing debt. 
C) more important under Revised Article 3 than under the prior Article 3. 
D) an order or promise to pay only out of a particular fund.

Question 8

Which of the following would be a bearer instrument?

Accepted Answer

A) A check payable to "cash." 
B) A check that says "pay to the order of John Jones." 
C) A check that says "pay to the order of bearer." 
D) Two of the above, (a) and (c). 
A) A check payable to "cash." 
B) A check that says "pay to the order of John Jones." 
C) A check that says "pay to the order of bearer." 
D) Two of the above, (a) and (c).

Question 9

To be negotiable, an instrument must be in writing.

Accepted Answer

A) True 
 B)False

Question 10

The UCC states that an instrument fulfills the requirements of being payable to bearer if it:

Accepted Answer

A) states it is payable to bearer or the order of bearer. 
B) does not state a payee. 
C) states it is payable to "cash" or to the order of "cash." 
D) All of the above. 
A) states it is payable to bearer or the order of bearer. 
B) does not state a payee. 
C) states it is payable to "cash" or to the order of "cash." 
D) All of the above.

Question 11

A reference in a negotiable instrument to the existence of a separate agreement to which it is subject destroys the negotiability of the instrument.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) It must be payable only out of a particular fund. 
B) It must contain an unconditional promise to pay a fixed amount in money. 
C) It must be payable on demand or at a definite future date. 
D) It must be in writing and signed by the maker or drawer. 
A) It must be payable only out of a particular fund. 
B) It must contain an unconditional promise to pay a fixed amount in money. 
C) It must be payable on demand or at a definite future date. 
D) It must be in writing and signed by the maker or drawer.

Question 13

Which of the following will destroy negotiability?

Accepted Answer

A) Making the instrument subject to the terms of another agreement. 
B) Making the instrument payable in German marks. 
C) Signing a check in pencil. 
D) Signing a check with an "X." 
A) Making the instrument subject to the terms of another agreement. 
B) Making the instrument payable in German marks. 
C) Signing a check in pencil. 
D) Signing a check with an "X."

Question 14

Explain the effect that a reference to other agreements has on negotiable instruments and the difference between a mere reference and a negotiable instrument's being subject to the terms of another agreement.

Accepted Answer

The restriction against reference to ano

Question 15

Promissory notes serve an essential business purpose only in areas of high finance.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) Payable on or before January 2, 2012. 
B) Payable one week after demand is made. 
C) Payable one year from the completion of the building. 
D) Payable on June 15, 2012 or, if the building is not complete on that date, one year from that date. 
A) Payable on or before January 2, 2012. 
B) Payable one week after demand is made. 
C) Payable one year from the completion of the building. 
D) Payable on June 15, 2012 or, if the building is not complete on that date, one year from that date.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Which article of the UCC deals with "negotiable instruments"?

Accepted Answer

A) Article 1. 
B) Article 2. 
C) Article 3. 
D) Article 9. 
A) Article 1. 
B) Article 2. 
C) Article 3. 
D) Article 9.

Question 19

Bill goes to First Bank to get a loan.He signs a note and agrees to repay the bank.What is the legal term for Bill's status regarding the note?

Accepted Answer

A) Payee. 
B) Maker. 
C) Payor. 
D) Drawer. 
A) Payee. 
B) Maker. 
C) Payor. 
D) Drawer.

Question 20

A provision in a promissory note payable one year from its date that the maker may extend the maturity date six months impairs the note's negotiability.

Accepted Answer

A) True 
 B)False

Exam 24: Form and Content

An "I.O.U." is a negotiable instrument.

Which of the following is not a negotiable instrument?

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

Negotiability is wholly a matter of form.

Distinguish between a note and a certificate of deposit.How are they alike? How are they different? Explain your answer.

Which of the following has been held to destroy the negotiability of an instrument and to render its transfer a contractual assignment?

The particular fund doctrine is:

Which of the following would be a bearer instrument?

To be negotiable, an instrument must be in writing.

The UCC states that an instrument fulfills the requirements of being payable to bearer if it:

A reference in a negotiable instrument to the existence of a separate agreement to which it is subject destroys the negotiability of the instrument.

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

Which of the following will destroy negotiability?

Explain the effect that a reference to other agreements has on negotiable instruments and the difference between a mere reference and a negotiable instrument's being subject to the terms of another agreement.

Promissory notes serve an essential business purpose only in areas of high finance.

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

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

Which article of the UCC deals with "negotiable instruments"?

Bill goes to First Bank to get a loan.He signs a note and agrees to repay the bank.What is the legal term for Bill's status regarding the note?

A provision in a promissory note payable one year from its date that the maker may extend the maturity date six months impairs the note's negotiability.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Transfer

Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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