Exam 12: Financing

In which of the following cases can the holder of an instrument seek recourse from the parties with secondary liability?

The Uniform Law on Bills of Exchange and Promissory Notes (ULB) differs from the Uniform Commercial Code in that the ULB ________.

In a ________ letter of credit, a credit is obtained by a seller naming the buyer as the beneficiary.

The laws in the United States allow warranty liability on negotiable instruments.

With regard to the form requirements for bills of exchange, the ULB is similar to the common law in that both require the instrument to ________.

Which of the following definitions describes an accommodation party of a bill or a note?

A(n) ________ is a written, dated, and signed three-party instrument containing an unconditional order by a drawer that directs a drawee to pay a definite sum of money to a payee on demand or at a specified future date.

Which of the following is true of a bill of exchange?

Notes that are secured by personal property are referred to as collateral notes.

Which of the following is true of checks?

Under common law, a person who acquires a bill or note for value, in good faith, and without notice that it is defective, overdue, or that any person has a claim to or defense against it is referred to as a(n) ________.

With regard to the form requirements for bills of exchange, the ULB differs from the common law in that the ULB requires the instrument to be ________.

A letter of credit is an instrument issued by a bank, or another person, at the request of an account party.

In a draft transaction, if the drawee is a buyer of the drawer, then the draft is referred to as a ________.

Which of the following would be an example of a countertrade?