Question 1

List the seven requirements for an instrument to be negotiable.

Accepted Answer

The answer of List the seven requirements for an instrument...

Question 2

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 3

Which of the following instruments would classify as a negotiable instrument?
A) A check that states, "Pay to the order of John Green."
B) A check payable to "X."
C) A check payable to "cash."
D) A blank check.
E) A $100 bill.

Accepted Answer

A check that states, "Pay to the order of John Green." is a negotiable instrument because it meets the requirements of being a written promise to pay a certain sum of money, signed by the maker, and payable to the order of a specific person.

Question 4

[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?
A) Drawee
B) Drawer
C) Owner
D) Payee
E) Payor

Accepted Answer

Sam is the drawer because he is the one who writes the check, directing his bank (the drawee) to pay a certain amount of money to another party (the payee).

Question 5

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 6

[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 role does Auto Repair hold?
A) Drawee
B) Drawer
C) Owner
D) Payee
E) Payor

Accepted Answer

Auto Repair is the payee because it is the entity to whom the check is made out and who will receive the payment from the check.

Question 7

[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 role does Banking International hold?
A) Drawee
B) Drawer
C) Owner
D) Payee
E) Payor

Accepted Answer

Banking International, the bank on which the check is drawn, acts as the drawee in this transaction.

Question 8

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

Accepted Answer

The answer of What are the two exceptions to the...

Quiz 26: Negotiable Instruments: Negotiability and Transferability

List the seven requirements for an instrument to be negotiable.

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?

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

[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?

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

[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 role does Auto Repair hold?

[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 role does Banking International hold?

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