Exam 25: Transfer

A(n) ___________ is the voluntary transfer to a third party of the rights arising from a contract.

A restrictive indorsement:

A qualified indorsement destroys negotiability.

The Code specifies that the signer is to be treated as an indorser if it is impossible to tell the nature of the signer's liability with certainty from the appearance of the signature on an instrument.

A person can be a holder if:

A qualified indorsement does not destroy negotiability or prevent further negotiation of the instrument.

What is negotiation? How does one become a "holder" of an instrument?

An unrestrictive indorsement attempts to restrict the rights of the indorsee.

A holder must actually have the instrument in his possession.

Jennifer, who stole a check "payable to cash," cannot be a holder since she did not receive possession by voluntary transfer.

Which of the following is required regarding indorsements?

The transfer of a nonnegotiable promise or order operates as an assignment.

The fictitious payee rule is based on the idea that employers should bear the risk of their own unscrupulous employees.

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

The customary manner of disclaiming the indorser's contractual liability is to add which of the following sets of words before or after his signature?

Revised Article 3 provides that the impostor rule does not include an impostor who impersonates an agent of a principal and who induces someone to create a negotiable instrument payable to the principal.

Delivery alone is insufficient to negotiate an instrument when it is payable to:

Which of the following are types of restrictive indorsements?

The case, State of Qatar v.First American Bank of Virginia, held that:

Any transfer for value of an instrument is a negotiation.