A) If a transaction is defined as a negotiable instrument within a certain country, it must conform to certain general characteristics outlined by the European Economic Council.
B) The European Economic Council adopted the UCC as the law in regard to negotiable instruments in all member countries of the European Union.
C) The European Economic Council adopted the UCC as the law in regard to negotiable instruments in all member countries of the European Union unless a member country has specifically opted out.
D) The European Economic Council suggests the UCC as the law in regard to negotiable instruments in all member countries of the European Union; but in order for it to be applicable, a member country must specifically affirm adoption of the UCC.
E) Negotiable instruments are not recognized.
G) All of the above
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A) The time it takes for a check to go through the traditional check-clearing process and be paid.
B) The time it takes for a bank authority to report a bad check to the issuing bank.
C) The time it takes to convert a nonnegotiable instrument to a negotiable instrument.
D) The time it takes to convert a time instrument to a demand instrument.
E) The time it takes to convert a demand instrument to a time instrument.
G) C) and E)
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A) The instrument is not negotiable because it does not contain an unconditional promise or order to pay, but it may be an enforceable contract.
B) The instrument contains an unconditional promise to pay; and, therefore, the fact that it is an IOU instrument does not affect negotiability.
C) The instrument contains an unconditional promise to pay but nevertheless is not negotiable because it is an IOU instrument.
D) The instrument is not negotiable because the words "payable on demand" are included; otherwise, the IOU instrument would contain an unconditional promise to pay.
E) The instrument is not negotiable, nor could it be an enforceable contract, because it does not contain an unconditional promise to pay.
G) None of the above
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A) A duly authorized agent's signature on behalf of his or her principal binds the principal and satisfies the signature requirement for negotiability.
B) An agent's signature on behalf of his or her principal cannot bind the principal and does not satisfy the signature requirement for negotiability.
C) An agent's signature on behalf of his or her principal binds the principal and satisfies the signature requirement for negotiability only if specific authorization from the principal allowing the agent to act on the specific transaction at issue is attached to the document.
D) A duly authorized agent's signature on behalf of his or her principal binds the principal and satisfies the signature requirement for negotiability only if the instrument is for an amount over $1,000.
E) A duly authorized agent's signature on behalf of his or her principal binds the principal and satisfies the signature requirement for negotiability only if the instrument is in an amount of $1,000 or less.
G) All of the above
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With a demand instrument,the p...View Answer
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A) Order; order
B) Order; transactional
C) Order; bearer
D) Transactional; bearer
E) Bearer; bearer
G) A) and C)
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A) Molly is incorrect, and the document by which Tim assigned the right to Richard is a negotiable instrument in regard to her duty to pay.
B) Molly is correct because her agreement with Tim was not in a writing containing words of negotiability.
C) Molly is correct because Richard was not a party to the original contract.
D) Molly is incorrect because her admission establishes the existence of a negotiable instrument between her and Tim that could be assigned to Richard.
E) Molly is correct because the amount at issue is insufficient to create a negotiable instrument.
G) B) and E)
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A) A negotiable instrument
B) A nonnegotiable instrument
C) A payable document
D) A nonpayable document
E) An endorsed payable document
G) A) and C)
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A) Jack is correct.
B) The agreement is not negotiable because it does not contain words of negotiability.
C) The agreement is not negotiable because the book was the wrong book.
D) The agreement is not negotiable because Jack was not a party to the original contract.
E) The agreement is not negotiable both because the amount at issue is insufficient to create a negotiable instrument.
G) A) and D)
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A) The check was an order instrument, and the bank must take the loss because it should only have provided funds to Phil.
B) Because the check was an order instrument, the bank was within its rights to pay Helen because she presented the check; and Phil has no rights against the bank.
C) Because the check was a bearer instrument, the bank must take the loss because it should only have provided the funds to Phil.
D) Because the check was a bearer instrument, the bank was authorized to pay Helen; and Phil has no rights against the bank.
E) Regardless of what type of instrument the check was, the bank had no right to cash the check when presented by Helen unless the bank can establish by a preponderance of the evidence that Helen misrepresented herself as an agent of Phil.
G) None of the above
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A) There is no such requirement in order to find negotiability.
B) A promise or order to pay must be specific and not be implied in order for negotiability to be found.
C) Simply acknowledging a debt satisfies the negotiability requirement of an unconditional promise to pay.
D) A common IOU is sufficient to satisfy the negotiability requirement of an unconditional promise to pay.
E) An offer of unconditional partial payment satisfies requirements of negotiability.
G) A) and B)
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A) Time
B) Demand
C) Recourse
D) Nonrecourse
E) Immediate
G) A) and C)
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A) U.S. dollars is the only satisfactory currency
B) U.S. dollars or English pounds are the only satisfactory currency
C) U.S. dollars, English pounds, or Euros are the only satisfactory currency
D) U.S. dollars, English pounds, Euros, and Japanese yen are all satisfactory currency
E) U.S. dollars, English pounds, Euros, Japanese yen, and gold are all satisfactory currency
G) B) and D)
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B) False
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A) As soon as it is issued.
B) Twenty-four hours after it is issued.
C) Two days after it is issued.
D) At midnight the day it is issued.
E) One hour after it is issued.
G) None of the above
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A) "I promise to pay from the corporate account."
B) "I promise to pay as per the contract for the sale of goods between the parties."
C) "I promise to pay because I owe the money."
D) "I promise to pay if the following occurs."
E) "Borrower may pay without penalty all or a portion of the amount owed earlier than it is due."
G) A) and D)
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A) Transferred
B) Paid
C) Maintained
D) Banked
E) Retained
G) A) and B)
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B) False
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A) The signature may be an assumed name.
B) A signature may be made by means of a device or machine.
C) A signature may be made manually.
D) The signature of an agent on behalf of the principal binds the principal and satisfies the signature requirement.
E) The UCC prohibits an "X" from being used as a signature.
G) A) and C)
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A) Handwriting does not prevent the instruments from being considered negotiable only because neither Paula nor John would be considered merchants in the transactions at issue.
B) Handwriting does not prevent the instruments from being considered negotiable only because John would not be considered a merchant in the transaction at issue, and Paula's status as a merchant is irrelevant.
C) Handwriting does not prevent the instrument from being considered negotiable only because Paula would not be considered a merchant in the transaction at issue, and John's status as a merchant is irrelevant.
D) Handwriting does not prevent the IOU instrument from being negotiable, but it does prevent the other instrument from being negotiable.
E) The issue of the instruments being handwritten does not prevent either from being considered negotiable.
G) B) and C)
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