Law Ch 26
Emily writes and signs a check payable to "Five Star Cinema." George, Five Star's manager, indorses the check "For deposit only." This is a. a special indorsement. b. a restrictive indorsement. c. a blank indorsement. d. a qualified indorsement.
a restrictive indorsement
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 a. after October 5. b. before October 5. c. at any time. d. on October 5.
after October 5.
Secure Loan Company has notice that a promissory note is overdue if the note is a demand instrument and Secure Loan takes it a. without noticing its due date. b. on its due date. c. an unreasonable time after its due date. d. before its due date.
an unreasonable time after its due date
Nina obtains a check payable to her order from Oran. Nina signs the back and gives the check to Patricia. Patricia writes "Pay to Patricia" above Nina's signature. By writing "Pay to Patricia" above Nina's signature, Patricia a. avoids the risk of loss from theft of the instrument. b. converts a legitimate negotiable instrument into a stolen instrument. c. relieves hirself from liability on the instrument. d. locks the instrument into the bank collection process.
avoids the risk of loss from theft of the instrument
Idina wants to buy a promissory note from Jo. The note is due on April 1. To become an HDC, Idina must buy the note a. before noon on April 1. b. before midnight on April 1. c. before 8:00 a.m. on April 1 d. within thirty days of April 1.
before midnight on April 1.
Ryan negotiates an order instrument to Selina by a. delivery with any necessary indorsement. b. delivery alone. c. presenting it in response to a demand by Selina. d. delivery with an assignment of his rights under a contract.
delivery with any necessary indorsement
At 1 a.m., on the sidewalk in front of EZ Credit Corporation, which is closed, Frank buys a $500 promissory note for $50 from Greg. When presented with Frank's demand for payment, Diane, the maker of the note, could successfully claim that Frank a. did not give value for the instrument. b. none of the choices. c. acquired the note with notice that it was overdue. d. did not acquire the instrument in good faith.
did not acquire the instrument in good faith
Mort negotiates an instrument to Nadia. Negotiation is the transfer of an instrument a. pursuant to preliminary contract discussions. b. in such form that the transferee becomes a holder. c. without the payment of a recognized medium of exchange. d. for valuable consideration under a contract.
in such form that the transferee becomes a holder.
Lindsey, an accountant for Madison & Monroe, acquires a negotiable instrument from Norma by promising to pay its face value in thirty days. Lindsey acquires the status of an HDC when she a. promises to pay the face value due on the instrument. b. transfers the instrument to another party. c. acquires possession of the negotiable instrument. d. pays the face value due on the instrument.
pays the face value due on the instrument
On the back of a check payable to Nero, he writes "Pay to Odell, without recourse" and signs it. This a. renders the check nonnegotiable. b. relieves Odell of liability on the check. c. does not affect the check's negotiability or any party's liability. d. relieves Nero of liability on the check.
relieves Nero of liability on the check