BUS 121 Unit 4 Quiz

All of the following are essential to negotiable commercial paper EXCEPT the fact that it must be:

On forms provided by a bank

An item of commercial paper containing the key words of negotiability, such as "pay to the order of," or their equivalent, is a(n):

Order Instrument

A document that provides relevant and important information about the company, its businesses, and its prospects is known as:

A prospectus

In general, all of the following are requirements for a bailment, EXCEPT that the:

Actual ownership of goods in necessary

All the following conditions release an endorser from liability EXCEPT:

An invalid tender of payment by a prior party

A transaction in which an owner of tangible personal property transfers the property to another party while still retaining ownership of such property is known as a:

Bailment

An agreement reached between a bailor and a bailee is a:

Bailment

Anyone in possession of goods can create a bailment relationship and become a(n):

Bailor

An endorsement where the name of the payee is written by the payee on the back of a negotiable instrument is a:

Blank endorsement

A written order drawn on a bank by a depositor that requests the bank to pay, on demand and unconditionally, a definite sum of money to the bearer of the instrument or to the order of a specified person is called a:

Check

Whoever is in possession of commercial paper is called the holder. The holder can be all of the following, EXCEPT the:

Co-maker

If a landlord has violated the express or implied duty to provide the tenant with quiet enjoyment, the tenant may abandon the premises under the doctrine of:

Constructive eviction

An agreement or promise in a lease to do a particular thing is known as a:

Covenant

Commercial paper that is dated ahead is:

Dictated

When the holder of commercial paper signs his or her name, with or without other words, on the back of the instrument, this writing is referred to as a(n):

Endorsement

In order to ensure negotiability, the Uniform Commercial Code assumes that the endorser is the true owner of the paper. If he or she found or stole the paper and transferred it to another by endorsement, the:

Endorser is liable for any loss suffered by the endorsee

The landlord-tenant relationship can be created by a(n):

Express or an implied contract

________ is the right of an owner of property such as plants or animals to increase in the property. The owner of a cow, for example, owns the calves born to the cow.

Freeholding

The voluntary transfer of property by one person to another without consideration or payment of any kind is a(n):

Gift

A landlord's promise that the premises have no defects that would impair the health, safety, or wellbeing of the occupants is an implied warranty of:

Habitability

The party who has taken commercial paper in good faith and for value, before maturity, and without actual or constructive notice of any defects in the instrument is a (n):

Holder in due course

Under common law, ownership of real property extended from the center of the earth to the highest point ________.

In the sky

When a person who has confidential information about a particular company purchases shares of the company's stock with the intention of selling these shares for a higher price when the information is released to the general public, then it is known as:

Insider trading

To create a bailment, the bailee must ______ to possess goods.

Intend

When two or more persons own equal shares of a property then it is called:

Joint tenancy

The law concerning bailments provides for certain rights and duties of both bailor and bailee, depending on the:

Kind of bailment

The tenant can occupy a landlord's property only with the consent of the:

Landlord

A bailment allows an owner of personal property to transfer possession of it to another individual for any one of the following purposes, EXCEPT:

Lease

The illegal activity of using insider information for personal gain is considered a(n):

Manipulative and deceptive practice

An instrument with an unconditional written promise to pay, or pay to the order of another party, a certain sum of money on demand or at a definite time is known as a:

Negotiable Instrument

An instrument should contain any of the following words of negotiability in order to make an instrument negotiable EXCEPT the words

Payable to endorser

The parties involved in a draft or a check have particular names. The person who receives the money is called the:

Payee

A bailment is a special kind of contract that is widely used in business and in:

Personal affairs

Legally, property other than land, including both tangible property and intangible property, is considered:

Personal property

The tenant has the right to ___________ the leased premises for the duration of the lease.

Possess

Commercial paper differs from ordinary contracts because of the:

Presumption of consideration and assignability

A place where a corporation or an issuer sells its securities to the public is known as a:

Primary market

The Securities Act of 1933 covers the sale of securities (stock, bonds, and other forms of investments) in the:

Primary market

A written note or letter in which one person promises to pay a certain amount of money to another at a definite time is known as a:

Promissory Note

The term _________ includes, in addition to land, both tangible and intangible personal property.

Property

A property that comprises land and everything attached to the land, including minerals such as oil, iron ore, and others, is known as:

Real property

Personal property, such as trees or shrubbery purchased at a nursery, become:

Real property when they are planted

A signature to which words have been added restricting the further endorsement of the instrument is a:

Restrictive endorsement

The Securities Exchange Act of 1934 covers the trading of securities in the _____________, defined as the place where one member of the public sells securities to another member of the public.

Secondary market

Issuers of securities must register the securities with the:

Securities and Exchange Commission

An endorsement in which the payee specifies the person to whom, or to whose order, the instrument is to be paid is a:

Special endorsement

When an endorsement is made on the instrument, it can be further negotiated only when it has been indorsed by the specified person. Such an endorsement is a:

Special endorsement

The person who agrees to pay for the use of real property owned by another is known as the:

Tenant

If the landlord interferes with the tenant's right of possession by evicting him or her without a court order of eviction, the tenant has the right to:

Terminate the lease

In 1992, the SEC created a computerized system, known as the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system that allows companies to:

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