Question 1

What are the requirements of negotiability under the Code? List and briefly summarize them.

Accepted Answer

(1) Be in writing.The instrument must be

Question 2

A certificate of deposit differs from a promissory note in that:

Accepted Answer

A)  the maker is always a bank. 
B)  there are three parties to the transaction. 
C)  the payee of a CD must be paid on demand. 
D)  Both the maker is always a bank  and the payee of a CD must be paid on demand . 
A)  the maker is always a bank. 
B)  there are three parties to the transaction. 
C)  the payee of a CD must be paid on demand. 
D)  Both the maker is always a bank  and the payee of a CD must be paid on demand .

Question 3

An assignee of contractual rights acquires only the same rights as the assignor.

Accepted Answer

A) True 
 B)False

Question 4

Revised Article 3 eliminates the particular fund doctrine by providing that a promise or order is not made conditional because payment is to be made only out of a particular fund.

Accepted Answer

A) True 
 B)False

Question 5

Under the Check 21 Act:

Accepted Answer

A)  banks must accept checks in electronic form. 
B)  banks are permitted to truncate original checks and process check information electronically. 
C)  banks must create substitute checks which are the legal equivalent of the original checks. 
D)  All of these. 
A)  banks must accept checks in electronic form. 
B)  banks are permitted to truncate original checks and process check information electronically. 
C)  banks must create substitute checks which are the legal equivalent of the original checks. 
D)  All of these.

Question 6

An instrument payable at a definite time is time paper.

Accepted Answer

A) True 
 B)False

Question 7

The UCC states that an instrument fulfills the requirements of being payable to bearer if it:

Accepted Answer

A)  states it is payable to "cash" or to the order of "cash." 
B)  states it is payable to bearer or the order of bearer. 
C)  does not state a payee. 
D)  All of these. 
A)  states it is payable to "cash" or to the order of "cash." 
B)  states it is payable to bearer or the order of bearer. 
C)  does not state a payee. 
D)  All of these.

Question 8

Form of the document has no effect on negotiability, as long as the information is correct.

Accepted Answer

A) True 
 B)False

Exam 24: Form and Content

What are the requirements of negotiability under the Code? List and briefly summarize them.

A certificate of deposit differs from a promissory note in that:

An assignee of contractual rights acquires only the same rights as the assignor.

Revised Article 3 eliminates the particular fund doctrine by providing that a promise or order is not made conditional because payment is to be made only out of a particular fund.

Under the Check 21 Act:

An instrument payable at a definite time is time paper.

The UCC states that an instrument fulfills the requirements of being payable to bearer if it:

Form of the document has no effect on negotiability, as long as the information is correct.

Introduction to Law

Business Ethicspart Ii: the Legal Environment of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Negligence and Strict Liabilitypart Iii: Contracts

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 Remediespart Iv: Sales

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remediespart V: Negotiable Instruments

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transferspart Vi: Agency

Relationship of Principal and Agent

Relationship With Third Partiespart Vii: Business Associations

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporationspart Viii: Debtor and Creditor Relations

Secured Transactions and Suretyship

Bankruptcypart Ix: Regulation of Business

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

International Business Lawpart X: Property

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

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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