Question 1

Under the Check 21 Act:

Accepted Answer

A) banks must accept checks in electronic form. 
B) banks are permitted to truncate original checks and process check information electronically. 
C) banks must create substitute checks which are the legal equivalent of the original checks. 
D) All of the above. 
A) banks must accept checks in electronic form. 
B) banks are permitted to truncate original checks and process check information electronically. 
C) banks must create substitute checks which are the legal equivalent of the original checks. 
D) All of the above.

Question 2

In the development of the law of negotiable instruments,which of the following was not a step?

Accepted Answer

A) Centuries ago, contract rights to the payment of money were not assignable because the contractual promise ran to the promisee. 
B) Contractual rights became assignable to third parties. 
C) The law of assignments changed to permit assignees to obtain greater rights than their assignors. 
D) The concept of a holder in due course developed, which allowed certain good faith transferees who gave value to acquire the right to be paid, free of most of the defenses to which an assignee would be subject. 
A) Centuries ago, contract rights to the payment of money were not assignable because the contractual promise ran to the promisee. 
B) Contractual rights became assignable to third parties. 
C) The law of assignments changed to permit assignees to obtain greater rights than their assignors. 
D) The concept of a holder in due course developed, which allowed certain good faith transferees who gave value to acquire the right to be paid, free of most of the defenses to which an assignee would be subject.

Question 3

Handwritten words supersede typewritten words contained in negotiable instruments.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

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

Question 5

Revised Article 3 eliminates the particular fund doctrine by providing that a promise or order is not made conditional because payment is to be made only out of a particular fund.

Accepted Answer

A) True 
 B)False

Question 6

Revised Article 1 of the UCC states that the "money" requirement for a negotiable instrument means the current official currency of the government,not just a medium of exchange authorized or adopted by a sovereign government as part of its currency.

Accepted Answer

A) True 
 B)False

Question 7

Carol buys some items at the drugstore and writes a check to the store on her account at First Bank.Who is the drawee?

Accepted Answer

A) Carol. 
B) The drugstore. 
C) First Bank. 
D) There is none. 
A) Carol. 
B) The drugstore. 
C) First Bank. 
D) There is none.

Exam 24: Form and Content

Under the Check 21 Act:

In the development of the law of negotiable instruments,which of the following was not a step?

Handwritten words supersede typewritten words contained in negotiable instruments.

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

Revised Article 3 eliminates the particular fund doctrine by providing that a promise or order is not made conditional because payment is to be made only out of a particular fund.

Revised Article 1 of the UCC states that the "money" requirement for a negotiable instrument means the current official currency of the government,not just a medium of exchange authorized or adopted by a sovereign government as part of its currency.

Carol buys some items at the drugstore and writes a check to the store on her account at First Bank.Who is the drawee?

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

Trusts and Wills

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