Exam 13: Negotiable Instruments, Credit, and Bankruptcy

A check must be paid:

Negotiable instruments do not include:

Before the UCC, negotiable instruments could not be bought or sold.

John bought a ring for Sue on credit. After six months John defaulted on his debt to Big Rock Jewelers. Big Rock sues John for payment of his debt. If Big Rock is worried that John might sell the ring before court proceedings, something it doesn't want to happen, it should obtain:

Under a Chapter 11 bankruptcy, a creditors' committee of the debtor's largest creditors is formed to supervise reorganization.

When the payee is concerned about the quality of a draft, it may be submitted to the drawee for confirmation. That is called an acceptance or bankers' acceptance.

The law governing liens is found in Art. 9 of the UCC.

Under Article 3 of the UCC, a note is:

Bankruptcy:

Bankruptcy in Chapter 13 is usually to be completed in seven years.

Credit terms for debtors must include the payment dates of the debt.

Bankruptcy rules in most countries now follow the U.N. Bankruptcy Convention.

Most large certificates of deposit are:

A ____ is a form of check in which the bank is both the drawer and the drawee.

When personal property is used as collateral to back up a loan, the note created is a:

Tetzlaff earned an MBA and a law degree suing student loans to finance the schooling. At the end, he could not find work and owed $260,000 in student loans. He filed for Chapter 7 bankruptcy and asked that the student loans be discharged as an undue hardship. The bankruptcy court and district court refused. The appeals court held that the debt would:

The most common lien on personal property is:

A ____ offers the right to continue to hold goods on which work has been done, or for which materials have been supplied, until the customer pays.

The most commonly used form of draft is a:

A mechanic's lien applies only to "mechanical" work, such as car repairs or plumbing work on a house.