Exam 28: Kinds of Instruments, parties, and Negotiability

Revised UCC Article 3 refers to which of the following parties as secondary obligors?

The requirement of a sum certain in money is fulfilled even though the interest rate changes at maturity.

Instruments are always negotiable.

If a check is made payable to Paolo,and Paolo signs on the back of the check,Paolo is:

A drawee on a draft has no responsibility under the draft until it has accepted that instrument.

Which of the following factors do not affect negotiability of an instrument?

When a party who is not originally named in an instrument allows her name to be added to it for the benefit of another party in order to add strength to the collectability of the instrument,that party becomes a secondary obligor and assumes a liability role.

Revised UCC Article 3 refers to drawers,indorsers,and accommodation parties as "secondary obligors."

The person to whom the order in a draft is addressed is known as the:

Negotiation of commercial paper results in lesser rights to transferees than those rights afforded assignees of contracts under contract law.

If an instrument is nonnegotiable,the rights of the parties are governed by the general principles of contract law.

When a drawee has signified in writing on a draft the willingness to make a specified payment,the drawee is called the acceptor.