Question 1

On May 1,Doug signs a check that is payable to the order of Employees Credit Corporation and that is dated July 1.This check is

Accepted Answer

A) negotiable. 
B) nonnegotiable,because it is payable to a corporation. 
C) nonnegotiable,because it is postdated. 
D) nonnegotiable,because it is signed by the drawer. 
A) negotiable. 
B) nonnegotiable,because it is payable to a corporation. 
C) nonnegotiable,because it is postdated. 
D) nonnegotiable,because it is signed by the drawer.

Question 2

For an instrument to be negotiable,it must be in writing.

Accepted Answer

A) True 
 B)False

Question 3

To be negotiable,an instrument must have conditional promises attached to it.

Accepted Answer

A) True 
 B)False

Question 4

Jack signs an instrument that states it is being executed "as per a contract for the sale of three magic beans dated June 1." This instru?ment is

Accepted Answer

A) negotiable. 
B) nonnegotiable,because banks cannot easily process commodities. 
C) nonnegotiable,because it includes the specific date of a contract. 
D) nonnegotiable,because it refers to an express contract. 
A) negotiable. 
B) nonnegotiable,because banks cannot easily process commodities. 
C) nonnegotiable,because it includes the specific date of a contract. 
D) nonnegotiable,because it refers to an express contract.

Question 5

To finance the purchase of a house from Tuna,Uri signs an instrument promising to pay to "Verity Mortgage Service" $160,000 with interest in installments with the final payment due July 10,2042.To be negotiable,this instrument must include the signature of

Accepted Answer

A) a non-party witness. 
B) Tuna or Tuna's realtor. 
C) Uri. 
D) Verity's chief financial officer. 
A) a non-party witness. 
B) Tuna or Tuna's realtor. 
C) Uri. 
D) Verity's chief financial officer.

Question 6

A time draft is payable at a definite future time.

Accepted Answer

A) True 
 B)False

Question 7

On behalf of Digital Cable Company,Elvin signs an instrument in which he promises to deliver 1,000 feet of optic fiber cable to Financiers eBank on March 1.This instrument is

Accepted Answer

A) negotiable. 
B) nonnegotiable,because cable is not a medium of exchange author?ized or adopted by a government as currency. 
C) nonnegotiable,because it does not indicate a specific type of cable. 
D) nonnegotiable,because it does not recite any consideration. 
A) negotiable. 
B) nonnegotiable,because cable is not a medium of exchange author?ized or adopted by a government as currency. 
C) nonnegotiable,because it does not indicate a specific type of cable. 
D) nonnegotiable,because it does not recite any consideration.

Question 8

Any person in possession of a negotiable instrument payable to bearer is a holder.

Accepted Answer

A) True 
 B)False

Question 9

A certificate of deposit is a type of note.

Accepted Answer

A) True 
 B)False

Question 10

Locke signs a check payable to the order of Metro Bank,filling in the blanks for the amount with the figures "$100" and "One thousand and 00/100 dol?lars." This check is payable in the amount of

Accepted Answer

A) $0. 
B) $100. 
C) $1,000. 
D) $1,100. 
A) $0. 
B) $100. 
C) $1,000. 
D) $1,100.

Question 11

Rainey signs a promissory note for $10,000 in favor of State University (SU).The note is undated but specifies that it is "payable one month after date." This note is

Accepted Answer

A) negotiable. 
B) nonnegotiable,because one month is not a reasonable time. 
C) nonnegotiable,because there is no option to pay early. 
D) nonnegotiable,because the maturity date cannot be deter?mined from the face of the instrument. 
A) negotiable. 
B) nonnegotiable,because one month is not a reasonable time. 
C) nonnegotiable,because there is no option to pay early. 
D) nonnegotiable,because the maturity date cannot be deter?mined from the face of the instrument.

Question 12

Rita owes $6,000 in unpaid taxes.In the sand of Seaside Beach,she exe?cutes an instrument for that amount that otherwise meets the re?quire?ments for negotiability.This instrument is likely

Accepted Answer

A) negotiable. 
B) nonnegotiable,because an instrument must be on paper. 
C) nonnegotiable,because sand is not sufficiently permanent. 
D) nonnegotiable,because the government does not appreciate it. 
A) negotiable. 
B) nonnegotiable,because an instrument must be on paper. 
C) nonnegotiable,because sand is not sufficiently permanent. 
D) nonnegotiable,because the government does not appreciate it.

Question 13

To be negotiable,an order to pay must be addressed to only one person.

Accepted Answer

A) True 
 B)False

Question 14

A check is a time instrument because it is payable in due time.

Accepted Answer

A) True 
 B)False

Question 15

To finance the purchase of a car from Giant Auto Sales,Hoppy signs an instrument promising to pay to "Ideal Credit Union" $18,000 with interest in installments with the final payment due May 15,2014.To be negotiable,this instrument must include on its face

Accepted Answer

A) any conditions on the sale of the car. 
B) any conditions to the disbursement of the funds. 
C) any conditions to the repayment of the loan. 
D) no conditions. 
A) any conditions on the sale of the car. 
B) any conditions to the disbursement of the funds. 
C) any conditions to the repayment of the loan. 
D) no conditions.

Question 16

Quincy draws a check payable to "Replay Stadium" to buy two season tickets to the next year's State College football games.This instrument is

Accepted Answer

A) a bearer instrument. 
B) an order instrument. 
C) valid but nonnegotiable. 
D) void. 
A) a bearer instrument. 
B) an order instrument. 
C) valid but nonnegotiable. 
D) void.

Question 17

An instrument is not negotiable if it is not payable at a definite time.

Accepted Answer

A) True 
 B)False

Question 18

Bagels n' Coffee Café issues an instrument in favor of Eatery Supplies,Inc.For the instrument to be negotiable,it must

Accepted Answer

A) be a conditional promise or order to pay. 
B) be payable on demand or at a specific time. 
C) be signed by the payee. 
D) recite the consideration given in exchange for it. 
A) be a conditional promise or order to pay. 
B) be payable on demand or at a specific time. 
C) be signed by the payee. 
D) recite the consideration given in exchange for it.

Question 19

A mere reference in an instrument to another writing makes the promise or order conditional.

Accepted Answer

A) True 
 B)False

Question 20

For an instrument to be negotiable,it must not contain an express promise or order to pay.

Accepted Answer

A) True 
 B)False

Exam 24: The Function Creation of Negotiable Instruments

On May 1,Doug signs a check that is payable to the order of Employees Credit Corporation and that is dated July 1.This check is

For an instrument to be negotiable,it must be in writing.

To be negotiable,an instrument must have conditional promises attached to it.

Jack signs an instrument that states it is being executed "as per a contract for the sale of three magic beans dated June 1." This instru?ment is

To finance the purchase of a house from Tuna,Uri signs an instrument promising to pay to "Verity Mortgage Service" $160,000 with interest in installments with the final payment due July 10,2042.To be negotiable,this instrument must include the signature of

A time draft is payable at a definite future time.

On behalf of Digital Cable Company,Elvin signs an instrument in which he promises to deliver 1,000 feet of optic fiber cable to Financiers eBank on March 1.This instrument is

Any person in possession of a negotiable instrument payable to bearer is a holder.

A certificate of deposit is a type of note.

Locke signs a check payable to the order of Metro Bank,filling in the blanks for the amount with the figures "$100" and "One thousand and 00/100 dol?lars." This check is payable in the amount of

Rainey signs a promissory note for $10,000 in favor of State University (SU).The note is undated but specifies that it is "payable one month after date." This note is

Rita owes $6,000 in unpaid taxes.In the sand of Seaside Beach,she exe?cutes an instrument for that amount that otherwise meets the re?quire?ments for negotiability.This instrument is likely

To be negotiable,an order to pay must be addressed to only one person.

A check is a time instrument because it is payable in due time.

To finance the purchase of a car from Giant Auto Sales,Hoppy signs an instrument promising to pay to "Ideal Credit Union" $18,000 with interest in installments with the final payment due May 15,2014.To be negotiable,this instrument must include on its face

Quincy draws a check payable to "Replay Stadium" to buy two season tickets to the next year's State College football games.This instrument is

An instrument is not negotiable if it is not payable at a definite time.

Bagels n' Coffee Café issues an instrument in favor of Eatery Supplies,Inc.For the instrument to be negotiable,it must

A mere reference in an instrument to another writing makes the promise or order conditional.

For an instrument to be negotiable,it must not contain an express promise or order to pay.

Introduction to Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Constitutional Authority to Regulate Business

Ethics and Business Decision Making

Intentional Torts and Privacy

Negligence and Strict Liability

Intellectual Property and Internet Law

Criminal Law and Cyber Crime

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration

Capacity and Legality

Mistakes, fraud, and Voluntary Consent

The Statute of Frauds

Third Party Rights

Performance and Discharge

Breach of Contract and Remedies

The Formation of Sales and Lease Contracts

Title, risk, and Insurable Interest

Performance Breach of Sales Lease Contracts

Warranties and Product Liability

International Law in a Global Economy

Transferability and Holder in Due Course

Liability,defenses,and Discharge

Checks and Banking in the Digital Age

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Mortgages Foreclosures After the Recession

Agency Formation and Duties

Agency Liability and Termination

Employment,immigration,and Labor Law

Employment Discrimination

Sole Proprietorships and Franchises

Partnerships and Limited Liability Partnerships

Limited Liability Companies Special Business Forms

Corporate Formation and Financing

Corporate Directors,officers, Shareholders

Corporate Merger, consolidation, Termination

Securities Law Corporate Governance

Law for Small Business

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

Professional Liaility and Accountability

Personal Property and Bailments

Real Property Landlord-Tenant Relationships

Insurance

Wills and Trusts

Legal and Ethical Considerations in Sustainability, Discovery, and Corporate Behavior

Legal and Ethical Issues in Contemporary Society

Contracts and Agreements

Legal Issues in Iowa's Video Game Labeling Statute, National Export Initiative, and Contract Law

Banking and Loan Liability

Bankruptcy and Agricultural Credit: Debts, Reporting, and Risk

Legal and Ethical Issues in Employment and Agency Relationships

Legal Issues in Business Franchising, LLC Management, Tax Collection, Director Liability, and Securities Regulations