Question 1

What is the difference between a demand instrument and a time instrument?

Accepted Answer

The answer of What is the difference between a demand...

Question 2

[Auto Repair] Sam writes a check from his checking account with Banking International to pay Auto Repair for service work it performed on his vehicle.
-Under the UCC,what title does Sam hold?

Accepted Answer

A)The check is an order by a drawer to a drawee to pay a payee.When Sam wrote
the check to Auto Repair,it ordered Banking International to pay Auto Repair the funds.Therefore,Sam is the drawer.
B)The check is an order by a drawer to a drawee to pay a payee.When Sam wrote the check to Auto Repair,it ordered Banking International to pay Auto Repair the funds.Therefore,Sam is the drawer.
C)The check is an order by a drawer to a drawee to pay a payee.When Sam wrote the check to Auto Repair,it ordered Banking International to pay Auto Repair the funds.Therefore,Sam is the drawer.
D)The check is an order by a drawer to a drawee to pay a payee.When Sam wrote the check to Auto Repair,it ordered Banking International to pay Auto Repair the funds.Therefore,Sam is the drawer.
E)The check is an order by a drawer to a drawee to pay a payee.When Sam wrote the check to Auto Repair,it ordered Banking International to pay Auto Repair the funds.Therefore,Sam is the drawer.

Question 3

Under the UCC,what role does Banking International hold?

Accepted Answer

A)The check is an order by a drawer to a drawee to pay a payee.When Sam wrote
the check to Auto Repair,it ordered Banking International to pay Auto Repair the funds.Therefore,Banking International is the drawee.
B)The check is an order by a drawer to a drawee to pay a payee.When Sam wrote the check to Auto Repair,it ordered Banking International to pay Auto Repair the funds.Therefore,Banking International is the drawee.
C)The check is an order by a drawer to a drawee to pay a payee.When Sam wrote the check to Auto Repair,it ordered Banking International to pay Auto Repair the funds.Therefore,Banking International is the drawee.
D)The check is an order by a drawer to a drawee to pay a payee.When Sam wrote the check to Auto Repair,it ordered Banking International to pay Auto Repair the funds.Therefore,Banking International is the drawee.
E)The check is an order by a drawer to a drawee to pay a payee.When Sam wrote the check to Auto Repair,it ordered Banking International to pay Auto Repair the funds.Therefore,Banking International is the drawee.

Question 4

What are the two exceptions to the time-certain requirement for negotiability discussed in the text?

Accepted Answer

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Question 5

List the seven requirements for an instrument to be negotiable.

Accepted Answer

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Question 6

Which of the following is not a negotiable instrument?

Accepted Answer

A)Although a negotiable instrument requires I fixed sum of money,money itself is
not a negotiable instrument.
B)Although a negotiable instrument requires I fixed sum of money,money itself is not a negotiable instrument.
C)Although a negotiable instrument requires I fixed sum of money,money itself is not a negotiable instrument.
D)Although a negotiable instrument requires I fixed sum of money,money itself is not a negotiable instrument.
E)Although a negotiable instrument requires I fixed sum of money,money itself is not a negotiable instrument.

Question 7

Under the UCC,what role does Auto Repair hold?

Accepted Answer

A)The check is an order by a drawer to a drawee to pay a payee.When Sam wrote
the check to Auto Repair,it ordered Banking International to pay Auto Repair the funds.Therefore,Auto Repair is the payee.
B)The check is an order by a drawer to a drawee to pay a payee.When Sam wrote the check to Auto Repair,it ordered Banking International to pay Auto Repair the funds.Therefore,Auto Repair is the payee.
C)The check is an order by a drawer to a drawee to pay a payee.When Sam wrote the check to Auto Repair,it ordered Banking International to pay Auto Repair the funds.Therefore,Auto Repair is the payee.
D)The check is an order by a drawer to a drawee to pay a payee.When Sam wrote the check to Auto Repair,it ordered Banking International to pay Auto Repair the funds.Therefore,Auto Repair is the payee.
E)The check is an order by a drawer to a drawee to pay a payee.When Sam wrote the check to Auto Repair,it ordered Banking International to pay Auto Repair the funds.Therefore,Auto Repair is the payee.

Question 8

Anne orally promises Julia that in return for Julia washing Anne's dog,Anne unconditionally promises to pay Julia $50 the next Wednesday.Is a contract formed,is it negotiable,and why or why not?

Accepted Answer

The answer of Anne orally promises Julia that in return...

Question 9

Provide the definition of a traveler's check.

Accepted Answer

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Question 10

Which of the following instruments would classify as a negotiable instrument?

Accepted Answer

A)An order instrument is a document that names a specific payee.
B)An order instrument is a document that names a specific payee.
C)An order instrument is a document that names a specific payee.
D)An order instrument is a document that names a specific payee.
E)An order instrument is a document that names a specific payee.

Quiz 26: Negotiable Instruments: Negotiability and Transferability