Question 1

Assuming a note made by Barbara payable to Carol, which indorsement will limit negotiability?

Accepted Answer

A) "Pay Al.Carol" 
B) "For deposit only, Acct.#602-043.Carol" 
C) "Pay Connie for Al.Carol" 
D) "Pay Claudia as attorney for John Jones.Carol" 
A) "Pay Al.Carol" 
B) "For deposit only, Acct.#602-043.Carol" 
C) "Pay Connie for Al.Carol" 
D) "Pay Claudia as attorney for John Jones.Carol"

Question 2

Personal defenses include all but which of the following?

Accepted Answer

A) Breach of contract 
B) Fraud in the execution 
C) Misrepresentation 
D) Failure of consideration 
A) Breach of contract 
B) Fraud in the execution 
C) Misrepresentation 
D) Failure of consideration

Question 3

Art signs a promissory note payable to the order of Swains Jewelers for $8,000 for a wedding ring.If the owner of Swains simply signs "Swains Jewelers":

Accepted Answer

A) the note is restrictively indorsed. 
B) the indorsement is ineffective because the note will have to bear the signature of the person who indorsed it. 
C) the note is negotiable by delivery. 
D) the indorsement will be valid only if dated. 
A) the note is restrictively indorsed. 
B) the indorsement is ineffective because the note will have to bear the signature of the person who indorsed it. 
C) the note is negotiable by delivery. 
D) the indorsement will be valid only if dated.

Question 4

The notice requirement of the Federal Trade Commission rule for consumer credit contracts has the effect of:

Accepted Answer

A) limiting the types of defenses to payment available to a consumer. 
B) eliminating the real defenses to payment. 
C) placing a holder in due course in the position of an assignee. 
D) permitting a holder in due course to have a questionable instrument reviewed by the FTC. 
A) limiting the types of defenses to payment available to a consumer. 
B) eliminating the real defenses to payment. 
C) placing a holder in due course in the position of an assignee. 
D) permitting a holder in due course to have a questionable instrument reviewed by the FTC.

Question 5

Which of the following is a special indorsement?

Accepted Answer

A) "John Doe" 
B) "Without recourse, John Doe" 
C) "Pay to Richard Roe, John Doe" 
D) "John Doe, for collection only" 
A) "John Doe" 
B) "Without recourse, John Doe" 
C) "Pay to Richard Roe, John Doe" 
D) "John Doe, for collection only"

Question 6

Defenses that may be asserted against a holder in due course are called:

Accepted Answer

A) personal defenses. 
B) real defenses. 
C) special defenses. 
D) holder in due course defenses. 
A) personal defenses. 
B) real defenses. 
C) special defenses. 
D) holder in due course defenses.

Question 7

Alexander Schwing indorses his check with his own name and the words "for deposit only." What type of indorsement is this?

Accepted Answer

A) A blank indorsement 
B) A special indorsement 
C) An unrestrictive indorsement 
D) A blank, restrictive indorsement 
A) A blank indorsement 
B) A special indorsement 
C) An unrestrictive indorsement 
D) A blank, restrictive indorsement

Question 8

Revised Article 3 adopts a definition of good faith that has both a subjective and an objective component.

Accepted Answer

A) True 
 B)False

Question 9

Bearer paper runs to whomever is in possession of it.

Accepted Answer

A) True 
 B)False

Exam 27: Transfer and Holder in Due Course

Assuming a note made by Barbara payable to Carol, which indorsement will limit negotiability?

Personal defenses include all but which of the following?

Art signs a promissory note payable to the order of Swains Jewelers for $8,000 for a wedding ring.If the owner of Swains simply signs "Swains Jewelers":

The notice requirement of the Federal Trade Commission rule for consumer credit contracts has the effect of:

Which of the following is a special indorsement?

Defenses that may be asserted against a holder in due course are called:

Alexander Schwing indorses his check with his own name and the words "for deposit only." What type of indorsement is this?

Revised Article 3 adopts a definition of good faith that has both a subjective and an objective component.

Bearer paper runs to whomever is in possession of it.

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

51: The Legal Environment Of Business

52: Contracts.

53: Agency.

54: Sales

55: Negotiable Instruments

56: Unincorporated Business Association

57: Corporations

58: Debtor and Creditor Relation

59: Regulation of Business

60: Property.

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