Question 1

When there is a conflict concerning the amount on a check between the printed and the handwritten terms,the handwritten term will prevail.

Accepted Answer

A) True 
 B)False

Question 2

A check or draft that one bank draws upon another bank is called a:

Accepted Answer

A) certified check. 
B) cashier's check. 
C) teller's check. 
D) bearer check. 
A) certified check. 
B) cashier's check. 
C) teller's check. 
D) bearer check.

Question 3

Which of the following statements in regard to the "fixed amount" requirement for negotiable instruments is false?

Accepted Answer

A) If a variable rate of interest is prescribed,the amount of interest is calculated by trade standards. 
B) The requirement of a "fixed amount" applies only to principal. 
C) If the description of the interest in the instrument does not allow the amount of interest to be ascertained,then interest is payable at the judgment rate in effect at the time interest first accrues. 
D) Interest may be stated in the instrument as a fixed or variable amount of money. 
A) If a variable rate of interest is prescribed,the amount of interest is calculated by trade standards. 
B) The requirement of a "fixed amount" applies only to principal. 
C) If the description of the interest in the instrument does not allow the amount of interest to be ascertained,then interest is payable at the judgment rate in effect at the time interest first accrues. 
D) Interest may be stated in the instrument as a fixed or variable amount of money.

Question 4

Which of the following contains both an acknowledgement by a bank that it has received money and a promise to repay money?

Accepted Answer

A) Commerce treaty 
B) Articles of Organization 
C) Certificate of Deposit 
D) Escrow 
A) Commerce treaty 
B) Articles of Organization 
C) Certificate of Deposit 
D) Escrow

Question 5

Which of the following statements about an assignment is true?

Accepted Answer

A) For an assignment to be valid,the assignee must be aware of the nature and extent of any defenses that the party liable on the contract might have against the assignor. 
B) For an assignment to be valid,the assignee must be put on notice of what rights she is getting from the assignment. 
C) The assignee of a contract can obtain no greater rights than the assignor had at the time of the assignment. 
D) An assignment only transfers benefits,not liabilities. 
A) For an assignment to be valid,the assignee must be aware of the nature and extent of any defenses that the party liable on the contract might have against the assignor. 
B) For an assignment to be valid,the assignee must be put on notice of what rights she is getting from the assignment. 
C) The assignee of a contract can obtain no greater rights than the assignor had at the time of the assignment. 
D) An assignment only transfers benefits,not liabilities.

Question 6

Alice writes a check "Pay to the order of Caleb." The check is drawn on the Berkley's Bank.Who are the drawer,the drawee,and the payee on this instrument? Why is this check called order paper?

Accepted Answer

Alice is the drawer,Berkley's

Question 7

Which of the following can be negotiated or transferred only by indorsement?

Accepted Answer

A) Order paper 
B) Bearer paper 
C) Cashier's check 
D) Teller's check 
A) Order paper 
B) Bearer paper 
C) Cashier's check 
D) Teller's check

Question 8

An instrument that is payable on the happening of some uncertain event is negotiable.

Accepted Answer

A) True 
 B)False

Question 9

In 1990,Revised Article 3 of the UCC was developed,which has now been adopted by all 50 states.

Accepted Answer

A) True 
 B)False

Question 10

Commercial paper is a contract for the payment of money.

Accepted Answer

A) True 
 B)False

Exam 31: Negotiable Instruments

When there is a conflict concerning the amount on a check between the printed and the handwritten terms,the handwritten term will prevail.

A check or draft that one bank draws upon another bank is called a:

Which of the following statements in regard to the "fixed amount" requirement for negotiable instruments is false?

Which of the following contains both an acknowledgement by a bank that it has received money and a promise to repay money?

Which of the following statements about an assignment is true?

Alice writes a check "Pay to the order of Caleb." The check is drawn on the Berkley's Bank.Who are the drawer,the drawee,and the payee on this instrument? Why is this check called order paper?

Which of the following can be negotiated or transferred only by indorsement?

An instrument that is payable on the happening of some uncertain event is negotiable.

In 1990,Revised Article 3 of the UCC was developed,which has now been adopted by all 50 states.

Commercial paper is a contract for the payment of money.

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Criminal Law and Procedure

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

Introduction to Contracts

The Agreement: Offer

The Agreement: Acceptance

Consideration

Reality of Consent

Capacity to Contract

Illegality

Writing

Rights of Third Parties

Performance and Remedies

Formation and Terms of Sales Contracts

Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Bankruptcy

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Transfers

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Introduction to Forms of Business and Formation of Partnerships

Operation of Partnerships and Related Forms

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

Administrative Law

The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

The Clayton Act, the Robinsonpatman Act, and Antitrust Exemptions and Immunities

Employment Law

Environmental Regulation

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