Exam 27: Negotiation, holder in Due Course, and Defenses

Which of the following is a written document signed by the maker or drawer with an unconditional promise or order to pay a certain sum in money on demand or at a specified time to the order of bearer?

In Southwest Bank,the case in the text in which an employee of the plaintiff fraudulently deposited into her personal account at the defending bank checks for which the plaintiff was payee.The plaintiff sued the defending bank for checks endorsed by the employee "for deposit only" and with no endorsement from the plaintiff.Which of the following was the result in this case?

A holder in due course may be subject to which the following defenses?

[House Painting] Graciela Reyes signed a check agreeing to pay,"Annie Greene,Marney Harris," $1,000.The payment was for painting her house.A problem with the note was that it spelled Annie's last name,"Greene," whereas Annie spells it simply,"Green." Annie and Marney were having a disagreement regarding how to split up the funds for painting the house.Annie proceeded to sign the check on the back,"Annie Green," and presented it to Hiro Murakami to satisfy a debt that she owed him.Hiro Murakami endorsed the check on the back,"Hiro Murakami,without recourse," and gave it to his nephew,Nate,who took it to the bank for payment.Meanwhile,Graciela has stopped payment on the check because,following a rainstorm,all the paint on the house looked spotted.Marney is unhappy because she did not obtain any of the funds and stated that Annie could not legally endorse the instrument because it misspelled her name and also because she,Marney,did not sign it. -Which of the following is true regarding Marney's claim that the endorsement by Annie was illegal because the note misspelled Annie's name?

Which of the following is a version of a qualified endorsement?

An endorsement that is either the payee's or the last endorsee's signature,payable to whoever has possession of the instrument,is which type of endorsement?

When is a time instrument not considered overdue?

For negotiation,which of the following types of paper require delivery and an endorsement by the holder?

Which of the following is the principle that if an item is transferred from one person to another,the transferee acquires all the rights the transferor had in the item?

In order for a holder to acquire the rights and privileges of an HDC,an instrument must be transferred directly from the HDC to the holder.

Which of the following is false regarding the elements a party must meet in order to be considered a holder in due course?

One who possesses a cashier's check payable from him to someone else is which of the following?

[Check Issues] Kelsey owns and operates a currency exchange.A regular customer,Rafe,comes in and cashes a $2,000 check issued by ABC Trucking.The day after Kelsey cashed the check,she received a notice from ABC Trucking that some checks had been stolen.It was later discovered that the checks she cashed for Rafe had been stolen.At the time she took the check,Kelsey was very busy with several customers in line.She simply glanced at the check and cashed it.A reasonable examination would have revealed that the check had been materially altered and changed from the amount of $200 to $2,000.Kelsey decided that she needed to hire some people to help her because she also had a problem with another check.On the same day that she took Rafe's check,she took a check from another customer,Brett.It was later discovered that the check,which was four months old,was the subject of a dispute between Brett and the issuer of the check for whom Brett had done some work.The issuer claimed that the work was improperly done.Both ABC Trucking and the issuer of the check to Brett had stopped payment on the checks.Kelsey claimed that as a holder in due course,she was entitled to payment on both checks. -What is the effect of Kelsey receiving notice the day after she cashed the check for Rafe that the check had been stolen?

Discuss whether or not you believe that our law should recognize holder in due course status with its resulting rights.

Which statement is true regarding the status of Nate?

A bank has given value for a negotiable instrument to the extent that the bank has a security interest in the instrument.

Which of the following is the correct term for a person receiving an endorsement?

Which of the following is true regarding the concept of negotiable instruments in Japan?

Under which of the following circumstances does a holder taking an instrument for value not become a holder in due course?

An instrument that reads,"Pay to the order of Jones or Green," is payable to ________ payees.