Exam 27: Liability of Parties

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Mark gives a bearer note for $50 to Joe in exchange for an excellent dinner at Joe's restaurant.Joe delivers the note to Sue for $50 and Sue takes it to Mark to be paid.If Mark says the note was originally written for only $5, what can Sue do?

(Multiple Choice)
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Discuss the effect of an unauthorized signature on an instrument.

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Zelda signs a promissory note for $500 to First Bank.At the request of both Zelda and the bank, Ann also signs the note as an accommodation maker.In this situation:

(Multiple Choice)
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A drawee bank's refusal to certify a check constitutes dishonor of the instrument.

(True/False)
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An unauthorized signature cannot be ratified by the person whose name appears on the instrument.

(True/False)
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The maker is the primary party on every note.

(True/False)
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An unauthorized signature may bind a principal who allowed the signature to be made through his own negligence.

(True/False)
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Warranty liability applies to persons who:

(Multiple Choice)
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An accommodation party will always be primarily liable on an instrument.

(True/False)
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Bob took a check written by Jack to Jack's bank to be certified.The bank stamped "Certified" on it and gave it back to Bob.What consequence?

(Multiple Choice)
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Which of the following is true of warranty liability as it affects negotiable instruments?

(Multiple Choice)
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Zoron Company purchased a truck from Ace Motors.The sales personnel at Ace know that Anton Green is an executive at Zoron.To pay for the truck, Anton delivered a $25,000 note to Ace.If he signed it "Anton Green, Agent":

(Multiple Choice)
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When a severe weather warning has been declared, a delay in notice is excused to the reasonably diligent holder who was prevented from posting the notice.

(True/False)
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Checks, when accepted, are said to be certified.

(True/False)
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Sarah has a checking account at First Bank.Orrin steals one of her blank checks, writes a check for $250, and then forges Sarah's signature.He then presents the check to First Bank for payment.First Bank pays the forged instrument.Which of the following statements is correct?

(Multiple Choice)
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An accommodation party is a direct beneficiary of the value received from lending her credit on an instrument.

(True/False)
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Failure to give notice of dishonor will discharge the drawer of a draft accepted by a nonbank from having to pay on the instrument unless notice is excused.

(True/False)
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The UCC excuses presentment for payment or acceptance if:

(Multiple Choice)
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The condition precedent to the liability of the drawer of an unaccepted draft is notice of dishonor.

(True/False)
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Under Revised Article 3, the drawer's liability is contingent upon dishonor and notice of dishonor.

(True/False)
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