Exam 13: Negotiable Instruments, Credit, and Bankruptcy

The one who issues or creates the document that requests payment, probably from a bank, is called:

____ specify payment to be made in the future, such as 60 days from the date of the writing of the draft.

Under the UCC, to avoid the problem of constantly issuing new financing contracts every time a business buys more inventory from a supplier, the parties may use:

A ____ requires immediate payment by the drawee to the payee.

Goods that are movable at the time a security interest attaches, or begins are classified as:

Millie takes her old VW to George's garage for repairs. George works on a cash only basis. He fixes the problems for $687. He tells her he will keep the car until she pays. Millie pays $150. George may:

In a draft, the drawee is the party ordered to pay a certain sum of money to a third party.

The most commonly used form of draft is a:

Lisa goes to the local appliance store and buys an oven on credit. The store extends her credit. The store's security interest in the oven perfects when the store:

The surplus that the creditors hope to capture by allowing the business to remain in operation so that they have a greater chance of full repayment is called:

Every year approximately ____ businesses use a Chapter 11 bankruptcy.

To meet the UCC's requirements for negotiability, an instrument must be an unconditional oral promise to pay.

A ____ is issued by the clerk of the court and directs the sheriff to seize and sell any of the debtor's nonexempt real or personal property within the court's jurisdiction.

When a debtor petitions the court for Chapter 7 bankruptcy, which of the following items need not be provided?

A mechanic's lien is also called an artisan's lien.

A(n) ____ is a court-ordered seizure of goods from the customer to prevent the customer from disposing of it during the lawsuit.

Negotiable instruments are important to business because they allow for the orderly creation and transfer of rights to the payment of money.

Although commercial paper may be either negotiable or nonnegotiable, only ____ fall under the UCC.

If a draft is sold to another party before it comes due, it is discounted.

The draft that requires immediate payment by the drawee to the payee, which is true of a check, is called: