Question 1

The person who signs a note and promises to pay it is the maker.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following would NOT be negotiable? Explain.
a.A check with the amount payable omitted.
b.A draft for 3,000 bushels of corn.
c.A check written in pencil on a paper towel.
d.A note stating that it is secured by a mortgage on a specified parcel of land.
e.A note stating "IOU fifty dollars."

Accepted Answer

a.The incomplete check is not negotiable

Question 3

What are the requirements of negotiability under the Code? List and briefly summarize them.

Accepted Answer

(1) Be in writing-the instrument must be

Question 4

A certificate of deposit differs from a promissory note in that:

Accepted Answer

A) the maker is always a bank. 
B) there are three parties to the transaction. 
C) the payee of a CD must be paid on demand. 
D) Both (a) and (b). 
A) the maker is always a bank. 
B) there are three parties to the transaction. 
C) the payee of a CD must be paid on demand. 
D) Both (a) and (b).

Question 5

A maker must sign in the lower right-hand corner of the instrument.

Accepted Answer

A) True 
 B)False

Question 6

A promise or order is payable at a definite time if it is payable at a:

Accepted Answer

A) time readily ascertainable at the time the promise or order is issued. 
B) fixed date or dates. 
C) definite period of time after sight or acceptance. 
D) All of the above. 
A) time readily ascertainable at the time the promise or order is issued. 
B) fixed date or dates. 
C) definite period of time after sight or acceptance. 
D) All of the above.

Question 7

Negotiable instruments:

Accepted Answer

A) include drafts, assignments, and promissory notes. 
B) are used primarily for smaller transactions. 
C) in the form of checks have decreased in use since 1995. 
D) have increased in usage to the point where they are now approximately equal to usage of cash for payments. 
A) include drafts, assignments, and promissory notes. 
B) are used primarily for smaller transactions. 
C) in the form of checks have decreased in use since 1995. 
D) have increased in usage to the point where they are now approximately equal to usage of cash for payments.

Exam 24: Form and Content

The person who signs a note and promises to pay it is the maker.

What are the requirements of negotiability under the Code? List and briefly summarize them.

A certificate of deposit differs from a promissory note in that:

A maker must sign in the lower right-hand corner of the instrument.

A promise or order is payable at a definite time if it is payable at a:

Negotiable instruments:

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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