Question 1

Which of the following is NOT one of the five ways to discharge a negotiable instrument?

Accepted Answer

A) payment 
B) cancellation 
C) alteration 
D) presentation 
A) payment 
B) cancellation 
C) alteration 
D) presentation

Question 2

Discharge means that

Accepted Answer

A) someone has stolen an instrument. 
B) an obligor refuses to pay an instrument that is due. 
C) liability on an instrument terminates. 
D) a bank has paid a check that has a forged indorsement. 
A) someone has stolen an instrument. 
B) an obligor refuses to pay an instrument that is due. 
C) liability on an instrument terminates. 
D) a bank has paid a check that has a forged indorsement.

Question 3

A check was indorsed as follows:
Which of the following will discharge all of the indorsers?
Jessica Hall
Without recourse
Paul Samuels
Collection guaranteed
Melissa Liston

Accepted Answer

A) notice of dishonor after 30 days' time 
B) the "without recourse" indorsement within the chain 
C) insolvency of drawer 
D) certification of the check 
A) notice of dishonor after 30 days' time 
B) the "without recourse" indorsement within the chain 
C) insolvency of drawer 
D) certification of the check

Question 4

Suppose that Emmett impersonates a famous clown.He goes into an advertising agency and convinces the manager to issue a check to him in the name of the famous clown,purportedly as part of a fund-raising campaign for a nursing home for old retired clowns.If Emmett negotiates the check to a check-cashing store by forging the name of the famous clown,then the ad agency will be able to argue that the bank must reimburse the account because the bank paid a check on a forged signature.

Accepted Answer

A) True 
 B)False

Question 5

An accommodation party and a co-maker of a note have the same liability on an instrument.

Accepted Answer

A) True 
 B)False

Exam 26: Liability for Negotiable Instruments

Which of the following is NOT one of the five ways to discharge a negotiable instrument?

Discharge means that

A check was indorsed as follows: Which of the following will discharge all of the indorsers? Jessica Hall Without recourse Paul Samuels Collection guaranteed Melissa Liston

An accommodation party and a co-maker of a note have the same liability on an instrument.

Introduction to Law

Ethics and Corporate Social Responsibility

International Law

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Dispute Resolution

Crime

Intentional Torts and Business Torts

Negligence, Strict Liability, and Product Liability

Privacy and Internet Law

Introduction to Contracts

Agreement: Offers and Acceptances

Consideration

Legality

Voidable Contracts: Capacity and Consent

Written Contracts

Third Parties

Contract Termination

Remedies

Practical Contracts

Introduction to Sales

Ownership, Risk and Warranties

Performance and Remedies

Secured Transactions

Creating a Negotiable Instrument

Accountants Liability

Agency Law

Employment and Labor Law

Employment Discrimination

Starting a Business: Llcs and Other Options

Partnerships

Life and Death of a Corporation

Management Duties

Shareholder Rights

Bankruptcy

Securities Regulation

Antitrust

Consumer Protection

Environmental Law

Intellectual Property

Real Property and Landlord Tenant Law

Personal Property and Bailment

Planning for the Future: Wills, Trusts and Insurance

Filters