Exam 16: Sales and Lease Contracts: Performance, Warranties, and Remedies

Which of the following is the party ordered to pay on a draft?

A ______ bank is the first bank that receives the check for payment.

Sometimes the depositary is the same bank as the payor bank.

Which of the following types of paper require only a delivery of the instrument to the holder by the payee?

Which of the following is an example of a negotiable instrument?

Which of the following types of paper require delivery and an endorsement by the holder?

In the case of multiple forgeries by the same wrongdoer, if a customer examines a bank statement and does not notify the bank of the first forgery within the time required by the UCC, what is the effect on subsequent forgeries assuming the bank is not negligent?

Which of the following was the result on appeal in Fernando Tatis v. U.S. Bancorp, the case in the text in which the plaintiff, a major-league baseball player, asked that the defending bank hold his bank statements and failed to notify the bank within 30 days of forgeries by one of his employees?

For an instrument to be negotiable, the instrument must indicate that it was created for the purpose of being ______.

When a specific payee is named in an instrument, the instrument is known as a[n] ______________ instrument.

Which of the following has as its purpose controlling how financial institutions handle customer information, ultimately providing greater privacy protections to financial institution customers?

Reference - Book Payment. Molly and Pat signed a contract providing that "Pat will furnish the correct used business law book for use in Molly's business law class; and in return on August 15, 2011, Molly promises to pay Pat $50 for the book." Molly took the book and planned to pay Pat. Meanwhile, Pat properly assigned the contract Molly had signed to Jack. When Molly went to class, however, she discovered that the book was the incorrect book. When Jack asked Molly for payment, Molly refused. Molly told Jack that the book was useless to her and that she was not paying either him or Pat anything for it. Jack told Molly that he had an enforceable assignment in the form of a negotiable instrument and that he could collect regardless of whether the book was useless. Molly did not believe him. Continuing with her attempt to save money on books, Molly agreed to buy Tim's U.S. history book for $40. She had an oral agreement with Tim that he would give her the book and that she would pay him in three days. This time Molly got the right book. Tim, in writing, properly assigned the right to the $40 payment to Richard. Richard asked Molly for the money. Molly admitted her agreement with Tim but told Richard that she was not going to pay him because he did not have a negotiable instrument. Molly also purchased a communications book from Sam promising in writing to give him in return the next day, to his order, a used DVD player she owned. Which of the following is true regarding Molly's assertion that Richard did not have a negotiable instrument?

Which of the following on appeal was the result in DIF Bank Deutsche Investitions Finanz GMBH v. Fluormatic Corporation of America, the case in the text in which the defendant claimed that drafts were not negotiable because they were not payable in a "sum certain" because they were payable in German deutsche marks and did not specify an exchange rate?

Reference - Yard Mowing. Paula agreed to mow John's yard once a week for $50 per week throughout the summer. Paula, however, was having trouble getting her money from John. On one occasion, he in handwriting gave her an IOU stating "I, John Jones, owe Paula Smith $50" which he signed at the end. A couple of weeks later, John did not have the money with which to pay Paula for additional mowing, and he handwrote the following on a piece of paper and gave it to her: "I, John Jones, promise to pay Paula Smith or to bearer, the sum of $100 on Monday, July 22, 2012." Paula quit mowing John's yard, and disgusted with John, Paula assigned both documents to Vince. When Vince presented the documents to John, John refused to pay on the basis that after inspecting the yard, he decided that Paula was doing a poor job. Vince told him the documents constituted negotiable instruments, but John disagreed. Disregarding the issue of whether Paula properly performed, is the statement "I, John Jones, promise to pay Paula Smith or to bearer, the sum of $100 on Monday, July 22, 2012," without a signature anywhere else on the document, sufficient to satisfy negotiability requirements?

Which of the following are considered banks under the UCC?

Which of the following is true regarding the relationship, if any, between negotiability and an unconditional promise or order to pay?

Negotiation is the transfer of possession to a third party who becomes the holder of the negotiable instrument.

A bank may determine that ______________ or later is the cut-off hour for handling checks.

Under the UCC an instrument "payable on demand" as one that ____________

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