Question 1

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

Accepted Answer

A) Payable on or before January 2, 2015. 
B) Payable one year from the completion of the building 
C) Payable one week after demand is made. 
D) Payable on June 15, 2014 or, if the building is not complete on that date, one year from that date. 
A) Payable on or before January 2, 2015. 
B) Payable one year from the completion of the building 
C) Payable one week after demand is made. 
D) Payable on June 15, 2014 or, if the building is not complete on that date, one year from that date.

Question 2

An instrument payable at a definite time is time paper.

Accepted Answer

A) True 
 B)False

Question 3

An incomplete instrument is not negotiable.However,when it is completed,it may become negotiable.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 6

A cashier's check is a check drawn by a bank upon itself to the order of a named payee.

Accepted Answer

A) True 
 B)False

Question 7

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 8

An "X" or a thumbprint could constitute a signature within the meaning of the term in the Code.

Accepted Answer

A) True 
 B)False

Question 9

Notes and certificates of deposit are orders to pay money.

Accepted Answer

A) True 
 B)False

Question 10

Which article of the UCC governs "negotiable instruments"?

Accepted Answer

A) Article 6. 
B) Article 2. 
C) Article 3. 
D) Article 9. 
A) Article 6. 
B) Article 2. 
C) Article 3. 
D) Article 9.

Question 11

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 Japanese yen. 
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 Japanese yen. 
C) Signing a check in pencil. 
D) Signing a check with an "X."

Question 12

Negotiable instruments:

Accepted Answer

A) include drafts, promissory notes, assignments, and certificates of deposit. 
B) are used primarily for smaller transactions. 
C) in the form of checks have decreased in use since 2000. 
D) have increased in usage to the point where they are now approximately equal to usage of cash for payments. 
A) include drafts, promissory notes, assignments, and certificates of deposit. 
B) are used primarily for smaller transactions. 
C) in the form of checks have decreased in use since 2000. 
D) have increased in usage to the point where they are now approximately equal to usage of cash for payments.

Question 13

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

A reference to the mere existence of ano

Question 14

A __________ is a specialized form of promise to pay money given by a maker in which the bank is the maker.

Accepted Answer

A) note 
B) certificate of deposit 
C) trade acceptance 
D) cashier's check 
A) note 
B) certificate of deposit 
C) trade acceptance 
D) cashier's check

Question 15

Negotiability is wholly a matter of form.

Accepted Answer

A) True 
 B)False

Question 16

An assignee of contractual rights acquires only the same rights as the assignor.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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 19

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 20

An instrument is payable to order if it is payable:

Accepted Answer

A) to the order of an identified person. 
B) to an identified person or order. 
C) Both of the above. 
D) None of the above. 
A) to the order of an identified person. 
B) to an identified person or order. 
C) Both of the above. 
D) None of the above.

Exam 24: Form and Content

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

An instrument payable at a definite time is time paper.

An incomplete instrument is not negotiable.However,when it is completed,it may become negotiable.

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 cashier's check is a check drawn by a bank upon itself to the order of a named payee.

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?

An "X" or a thumbprint could constitute a signature within the meaning of the term in the Code.

Notes and certificates of deposit are orders to pay money.

Which article of the UCC governs "negotiable instruments"?

Which of the following will destroy negotiability?

Negotiable instruments:

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.

A __________ is a specialized form of promise to pay money given by a maker in which the bank is the maker.

Negotiability is wholly a matter of form.

An assignee of contractual rights acquires only the same rights as the assignor.

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

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

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

An instrument is payable to order if it is payable:

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 and 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

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