Used Car Commission.William promised to sell Helen's car for her,but he wanted a commission of 10%.Helen signed an instrument promising to pay William a 10% commission if he sold her car.William assigned the agreement to Phil.Helen's car was sold and the buyer paid Helen.A dispute ensued between Helen and William regarding whether William found the buyer or the buyer found Helen.When Phil asked Helen for payment on the instrument,Helen refused.William,Helen,and Phil settled their dispute without going to court,and Helen wrote Phil a check for $3,000.Phil endorsed the check on the back,planning to take it to the bank the next day.Unfortunately,Phil lost the check and it was found by Barry,who cashed it at the local bank.Barry then left town.Before Phil endorsed the check,it was a(n)________ instrument,and after he endorsed it,the check was a(n)________ instrument.

Question

Quizplus · Accepted Answer

According to Uniform Commercial Code Section 3-109(b),when a specific payee is named,this is known as an order instrument.In contrast,Uniform Commercial Code Section 3-109(a)states that negotiable instruments payable to whomever is bearing them are known as bearer instruments.