Exam 32: Negotiation and Holder in Due Course

Ahmed Cohen received a check for $5,000 for a used car he sold.The check was marked "pay to the order of Ahmed Cohen." On back of this check he wrote,in his handwriting,"Ahmed Cohen." This has the legal effect of:

A person who takes an instrument containing a restrictive indorsement,"Pay to Jack Black in Trust for Mel Gibbs,":

Rachel's father gave her a check drawn on his checking account marked "payable to the order of Rachel Stern." This instrument is order paper,because:

If the holder's name on an instrument is misspelled or wrong,then the indorsement:

In which of the following situations is an instrument termed as overdue?

Order paper that is indorsed in blank becomes bearer paper.

Indorsements that state a condition to the right of the indorsee to receive payment do not affect the right of the indorsee to enforce the instrument.

If an individual holds a note that is labeled consumer paper then that individual cannot be a holder in due course.

In qualified indorsement,the indorser accepts the liability to make the instrument good,if the maker or drawer defaults on it.

A person cannot be a holder in due course of a negotiable instrument if,when she takes it,the instrument is irregular or some important or material term is blank.

Ordinary nonphysical and nonviolent duress that causes the transfer of a negotiable instrument:

On June 1,Mike writes a check payable to Pete.Without ever being paid,the check is eventually negotiated to Hal,who receives it on September 15,with notice of the date on its face.Hal is not a holder in due course of the check.

Which of the following is an example of restrictive endorsements recognized under Article 3?

Value is identical to simple consideration.

If an order instrument is transferred without indorsement,then the instrument:

An instrument that is payable "to cash" can be negotiated simply by giving it to the person to whom you wish to transfer it.

Which of the following is generally true about the Federal Trade Commission's (FTC)regulations of the holder in due course rule?

What are the general requirements to become a holder in due course?

Jackie Collins is issued a check payable to the order of Jacky Collens.She takes the check to the bank.In order to cash the check she has to:

The new Article 3 recognizes and enforces indorsements that prohibit further negotiation of the instrument.