FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 23: Negotiable Instruments

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

True/False

Review LaterAdd Note

Review Later

An instrument is not defective simply because it is overdue.

A) True
B) False

Correct Answer

verified

Show Answer

Question 32

True/False

Review LaterAdd Note

Review Later

To properly present a draft for payment,the holder must present it to the drawer.

A) True
B) False

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

Plumbing & Pipes Supply Company issues a promissory note as a demand instrument with a due date of October 5. QuikPay Loan Company accepts the note. QuikPay has notice that the note is overdue if the firm takes the note

An imposter's indorsement on an instrument is never effective against its drawer or maker.

Dishonor occurs if payment of an instrument cannot be obtained within the prescribed time.

A holder does not take an instrument for value if he or she gives a negotiable instrument as payment.

On the back of a check payable to Nero,he writes "Pay to Odell,without recourse" and signs it. This

An indorser who does not wish to be liable on an instrument can use a qualified indorsement.

On a sheet of paper,Elle writes,without her signature,"I acknowledge that I owe Frank $600,payable out of the proceeds of the sale of my car,a 1995 Honda Civic,which I promise to advertise 'For Sale' next week. Payment is to be made on or before six months from today." What type of instrument is this? Is it nego-tiable? If not,why not?

Ray pays Slim in good faith for a promissory note. Slim warrants that the note has not been altered. This is

A person whose name is forged on an instrument normally has no liability to pay any holder the value of the instrument.

LNG Corporation and Midstates Utility Company enter a contract for a sale of liquefied natural gas. LNG draws a draft unconditionally ordering Midstates Utility to pay $50,000 to LNG's order in sixty days. Midstates Utility signs and dates the draft. -Refer to Fact Pattern 23-2. On this instrument,LNG is

Barry draws a check payable to "Cash" and presents it to Dollars & Sensestore for payment. This instrument is

Vicenzo,in good faith and for value,gets from Wren a check "payable to the order of bearer." Vicenzo does not know that Wren stole the check. Vicenzo is

Under the fictitious payee rule,the payee's indorsement is not treated as a forgery.

One of the transfer warranties is that the instrument has not been altered.

To finance the purchase of an electric guitar and amplifier from Leon's Guitars,Milo signs an instrument promising to pay to "National Lenders" $1,800 with interest in installments with the final payment due August 15,2016. To be negotiable,this instrument must include on its face

A person who in good faith acquires a negotiable instrument from a thief cannot become an HDC under any circumstances.

LNG Corporation and Midstates Utility Company enter a contract for a sale of liquefied natural gas. LNG draws a draft unconditionally ordering Midstates Utility to pay $50,000 to LNG's order in sixty days. Midstates Utility signs and dates the draft. -Refer to Fact Pattern 23-2. This instrument is

GR8 Products,Inc.,warrants its goods to be free of defects. Heck issues an instrument to obtain goods from GR8 that prove defective. With respect to payment on the instrument,Heck