A) Delivered;transferred.
B) Negotiated;held.
C) Endorsed;delivered.
D) Transferred;delivered.
E) Stamped with an allonge;delivered.
G) B) and D)
Correct Answer
verified
Correct Answer
verified
A) The passing of a warranty that the recipient is a holder in due course.
B) The physical handing of an instrument from someone entitled to it,to the person intended to receive it.
C) The passing of a warranty that the recipient is a holder.
D) The passing of a warranty that the instrument is collectible.
E) The passing of a warranty that an instrument qualifies as a negotiable instrument.
G) A) and C)
Correct Answer
verified
Correct Answer
verified
A) The party must have begun performance on a promise and have provided consideration.
B) The party must provide consideration.
C) The party must have provided a bargained-for promise.
D) The party must have provided consideration or received the note as a gift.
E) The party must take the instrument in exchange for a promise that has already been performed.
G) A) and B)
Correct Answer
verified
Correct Answer
verified
A) Endorsement is impossible in such a situation.
B) With the holder's actual name,with the misspelled name,or with the misspelled name followed by the actual name.
C) Only with the holder's actual name.
D) Only with the misspelled name.
E) Only with the misspelled name followed by the actual name.
G) D) and E)
Correct Answer
verified
Correct Answer
verified
A) The plaintiff was allowed to recover under the shelter principle and holder-in-due-course status.
B) The plaintiff was not allowed to recover because the market misrepresented the status of the check.
C) The plaintiff was allowed to recover because the market misrepresented the status of the check.
D) The plaintiff was not allowed to recover because of the shelter principle and holder-in-due-course status.
E) The plaintiff was not allowed to recover because he took the check knowing of a problem.
G) C) and D)
Correct Answer
verified
Correct Answer
verified
A) Endorsement for deposit or collection only.
B) Special qualified endorsement.
C) Conditional endorsement.
D) Endorsement that prohibits further endorsement.
E) Trust endorsement.
G) D) and E)
Correct Answer
verified
Correct Answer
verified
A) Good faith is not defined;it is left to the judgment of the individual HDC.
B) Whether the holder himself acted reasonably when taking the instrument.
C) Using the proper degree of caution that an objective,reasonable holder would have.
D) Whether the holder himself acted honestly when taking the instrument.
E) Under reasonable commercial standards of fair dealing.
G) A) and C)
Correct Answer
verified
Correct Answer
verified
A) Under the UCC a person has notice of a fact under the following two circumstances: 1) when the person has actual knowledge of the fact,and 2) when the person receives notice or notification of the fact.
B) Under the UCC a person has notice of a fact only when the person has signed a verification to the effect that notice was received.
C) Under the UCC a person has notice of a fact only when the person has actual knowledge of the fact.
D) Under the UCC a person has notice of a fact only when the person receives written notification either through regular mail or electronic means.
E) Under the UCC a person has notice of a fact under the following three circumstances: 1) when the person has actual knowledge of the fact,2) when the person receives notice or notification of the fact,and 3) when the person has reason to know the fact exists.
G) A) and B)
Correct Answer
verified
Correct Answer
verified
B) False
Correct Answer
verified
Correct Answer
verified
A) An allonge.
B) A qualified endorsement.
C) A restricted endorsement.
D) A special endorsement.
E) A blank endorsement.
G) A) and B)
Correct Answer
verified
Correct Answer
verified
A) Objective reasonableness.
B) Reasonable investigation.
C) Subjective reasonableness.
D) Good faith.
E) Commercial standards.
G) C) and D)
Correct Answer
verified
Correct Answer
verified
A) Trust endorsement.
B) Endorsement to prohibit further endorsement.
C) Conditional endorsement.
D) Bearer endorsement.
E) Conditional bearer endorsement.
G) A) and B)
Correct Answer
verified
Correct Answer
verified
B) False
Correct Answer
verified
Correct Answer
verified
A) Infancy-a party is below the legal age of consent.
B) Forgery.
C) Fraud in the essence.
D) Breach of contract.
E) Material alteration of a completed instrument.
G) D) and E)
Correct Answer
verified
Correct Answer
verified
A) To encourage free-market capitalism through competition.
B) To protect financial intermediaries by restricting the marketability of instruments.
C) To encourage the marketability of instruments and encourage financial intermediaries to engage in financial transactions.
D) To help people devise new ways to achieve financial success.
E) To remove as many restraints as possible from the marketability of instruments in order to facilitate commerce.
G) B) and E)
Correct Answer
verified
Correct Answer
verified
A) Special unqualified.
B) Conditional.
C) Blank unqualified.
D) Blank qualified.
E) Special qualified.
G) B) and C)
Correct Answer
verified
Correct Answer
verified
A) As a holder in due course,Nate may demand payment from either Graciela,Annie,or Marney.
B) As a holder,Nate may demand payment from either Graciela,Annie,or Marney.
C) Nate may not demand payment from either Graciela,Annie,or Marney.
D) As a holder in due course,Nate may demand payment from either Graciela or Annie,but not Marney.
E) As a holder,Nate may demand payment from either Graciela or Annie,but not Marney.
G) B) and E)
Correct Answer
verified
Correct Answer
verified
B) False
Correct Answer
verified
Correct Answer
verified
A) On the basis that the law does not want to unduly burden holders,the alteration will affect her status as a holder in due course only because the instrument was written for an amount in excess of $500.
B) The alteration has no effect because a holder is not charged with examining an instrument presented for payment.
C) The alteration will affect her status as a holder in due course only if the issuer can establish that it was not negligent in allowing a thief to gain access resulting in the alteration.
D) The alteration will affect her status as a holder in due course only if she had been put on notice of prior criminal behavior in the past on the part of Rafe.
E) The alteration will likely prohibit her from being a holder in due course.
G) A) and B)
Correct Answer
verified
Correct Answer
verified
A) She is incorrect,but only if it can be established that Hiro Murakami lacked knowledge that she had not given her consent to the form of the endorsement.
B) She is correct because both names are required in order to provide legal endorsement.
C) She is incorrect because Annie properly endorsed the note,and only her signature was needed.
D) She is correct in that her name was needed for legal endorsement,but that is only the case because of the misspelling of Annie's name.
E) She is correct because regardless of whether the payees are listed with no designation as to whether they are alternate or joint,or whether the words,"or" or "and" are used to designated payees,any listed payee must endorse a note in order for it to be properly payable.
G) All of the above
Correct Answer
verified
Correct Answer
verified
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