blaw review
To borrow the funds to pay tuition at Alpha College, Bea signs an instrument unconditionally promising to pay to "Country Loan Corporation" $7,500 with interest in installments with the final payment due June 1, 2030. 44. Refer to Fact Pattern 25-3. The instrument that Bea signed is most likely
A promissory note
To borrow funds to finance his business, Rollo executes an instrument in favor of Security Bank. For the instrument to be negotiable, the signature must be
Anywhere on the instrument
A check is a time instrument because it is payable in due time
False
A promissory note must name a specific payee to be negotiable
False
A statement in an instrument that payment can be made only out of a particular fund renders it nonnegotiable.
False
An instrument payable "with interest" must specify a particular rate to be negotiable.
False
For an instrument to be negotiable, the word "negotiable" must appear on it
False
Brie signs an instrument in which she promises to pay Carmen a certain price for her Dodge Dart. The instrument will be negotiable if it meets all of the requirements for negotiability, including that it is payable in
Money
52. Gail owes $5,000 in unpaid taxes. Using the back of an old t-shirt, she executes an instrument for $5,000 that otherwise meets the requirements for negotiability. This instrument is likely
Negotiable
Lucas signs an instrument payable to the order of MoneyNow, Inc., that allows a holder to demand payment of the entire amount due, with interest, if Lucas fails to make a payment. This instrument is
Negotiable
With respect to this instrument, Country Bank is
The payee
To finance the purchase of a house from Sander, Tobias signs an instrument promising to pay to "Uno Mortgage Company" $200,000 with interest in installments with the final payment due July 10, 2047. To be negotiable, this instrument must include the signature of
Tobias
LNG Corporation and Midstates Utility Company enter a contract for a sale of liquefied natural gas by LNG to Midstates. LNG draws a draft unconditionally ordering Midstates Utility to pay $50,000 to LNG's order in sixty days. Midstates Utility signs and dates the draft. This instrument is
a trade acceptance
Quincy draws a check payable to "Replay Stadium" to buy two season tickets to the next year's State College football games. This instrument is
an order instrument.
43. Builders Exchange, Inc., issues an instrument in favor of Custom Construction Company. For the instrument to be negotiable, it must
be payable on demand or at a definite time.
47. To finance the purchase of an electric guitar and amplifier from Leon's Guitars, Milo signs an instrument promising to pay to "National Lenders" $1,800 with interest in installments and the final payment due August 15, 2016. To be negotiable, this instrument must include on its face
not any conditional promises or orders to pay.
Alvin signs a promissory note payable to the order of Borrow & Spend Loan Company. The note states that it is payable "with interest at the legal rate." This note is
not necessarily nonnegotiable
Brad, the owner of Clear Cut Corporation, signs an instrument that includes the phrase "payment for this note will be made from the proceeds of next year's timber sale." This instrument is
not necessarily nonnegotiable.
Pedro signs an instrument that states it is being executed "as per a contract for the sale of a truckload of almonds dated May 1." This instrument is
not necessarily nonnegotiable.
LNG is
the drawer
With respect to Erin's check, Foodland is
the payee
Fred has six nieces, ages five to sixteen. He writes an order instrument for $50 that states "Pay to the order of my niece." The order instrument is
nonnegotiable, because there is no specific person identified.
Laura writes on a piece of paper, "I owe you $400," signs it, and gives it to Max. This instrument is
not negotiable, because it does not include an express promise to pay.
60. On behalf of Bubbly Drinks Company, Calvin signs an instrument in which he promises to deliver 100 cases of soda as payment to Dispatch & Delivery, Inc., on April 1. This instrument is
not negotiable, because soda is not a medium of exchange authorized or adopted by a government as currency.
62. Ben signs a promissory note for $1,500 in favor of Community College. The note is undated but specifies that it is "payable one month after date." This note is
not negotiable, because the maturity date cannot be determined from the face of the instrument.
On a trade acceptance, the drawer is also the drawee
False
To be negotiable, an instrument must be payable on demand.
False
With respect to negotiability, the location of a signature on a document is important
False
48. Gwen deposits $5,000 with Home State Bank on July 1, 2016. Home State Bank promises to repay Gwen the $5,000 plus 3 percent annual interest on July 1, 2021. Home State Bank issued to Gwen
a certificate of deposit.
Barry draws a check payable to "Cash" and presents it to Dollars & Sense store for payment. This instrument is
a bearer instrument.
A draft is
an unconditional written order to pay money.
Consumer Loans LLC signs an instrument payable to the order of Diana that states, "The maker of this note at the date of maturity, April 1, 2019, can extend the time of payment, but for no more than a reasonable time." This instrument is
nonnegotiable, because it is not payable within a definite time.
With respect to this instrument, Bea is
The maker
Erin draws a check payable to "Foodland" to buy groceries. Erin's check is most likely
an order to pay
Midstates is
the drawee