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Course Number: BUS 241, Spring 2011

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NR275.BUS.241.35.SP11 - ( [Spring 2011] BUS 241-35: Business Law I) Review Test Submission: Module 5 Practice Test Assignments ... Module 5 Practice Test NR275.BUS.241.35.SP11 ([Spring 2011] BUS 241-35: Business Law I) Announcements Faculty & Course Information Assignments Course Documents Discussion Board My Grades Communication Tools Resources Review Test Submission: Module 5 Practice Test User...

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- NR275.BUS.241.35.SP11 ( [Spring 2011] BUS 241-35: Business Law I) Review Test Submission: Module 5 Practice Test Assignments ... Module 5 Practice Test NR275.BUS.241.35.SP11 ([Spring 2011] BUS 241-35: Business Law I) Announcements Faculty & Course Information Assignments Course Documents Discussion Board My Grades Communication Tools Resources Review Test Submission: Module 5 Practice Test User Submitted Name Status Score Kristen M Ritch 3/5/11 5:25 PM Module 5 Practice Test Completed 0 out of 100 points Time Elapsed 5 seconds out of 2 hours and Instructions Question 1 0 out of 2 points Dru signs a check "pay to the order of Eppie" drawn on Dru's account in First Federal Bank. Greta forges Eppie's indorsement. First Federal pays the check. Most likely Selected Answer: Correct Answer: [None Given] First Federal will have to recredit Dru's account. 0 out of 2 points Question 2 Each bank in a collection chain must pass a check on before midnight of the day of its receipt. Selected Answer: Correct Answer: [None Given] False 0 out of 2 points Question 3 A bank is obligated to pay an uncertified check presented less than six months from its date. Selected Answer: Correct Answer: [None Given] True 0 out of 2 points Question 4 Elmer can write checks on his account at Finance Bank. Gina steals the checks, forges Elmer's signature, and cashes the checks at Finance. The bank is excused from any liability if, after receipt of the first forged check, Elmer fails to report the forgeries within Selected Answer: Correct Answer: [None Given] three years. 0 out of 2 points Question 5 Dora writes a check for $100 drawn on Eastern Bank and presents it to Fast Cash, Inc., for payment. If the check is not backed by sufficient funds, Dora may be prosecuted for Selected Answer: Correct Answer: [None Given] fraud. 0 out of 2 points Question 6 Simon signs a check "pay to the order of Tilly" drawn on Simon's account in United Bank. Vela forges Tilly's indorsement, First Federal Bank cashes the check, and Vela disappears. United pays First Federal and debits Simon's account. Most likely, the ultimate loss will fall on Selected Answer: Correct Answer: [None Given] United Bank. 0 out of 2 points Question 7 When a check "bounces," its holder can resubmit the check later, hoping that sufficient funds will be available. Selected Answer: Correct Answer: [None Given] True 0 out of 2 points Question 8 Pat, the manager of Quik Mart, deposits the store's receipts in its account at Regional Bank. As to the receipts, the relationship between Quik Mart and the bank is Selected Answer: Correct Answer: [None Given] creditor and debtor. 0 out of 2 points Question 9 E-Bank, an online financial institution, gives financial information about Paula and other customers to a federal agency without the customers' permission. E-Bank may be liable under Selected Answer: Correct Answer: [None Given] the Right to Financial Privacy Act. 0 out of 2 points Question 10 A customer has sixty days from the date of receipt of a statement of an electronic transfer to notify the financial institution of any errors. Selected Answer: Correct Answer: [None Given] True 0 out of 2 points Question 11 A bank cannot recover from a holder who cashes a check bearing a forged indorsement once the bank has accepted and paid the item. Selected Answer: [None Given] Correct Register to View Answer0 out of 2 points Question 12 The Federal Reserve System acts as a clearinghouse where banks exchange checks. Selected Answer: Correct Answer: [None Given] True 0 out of 2 points Question 13 A bank that pays a customer's check with a forged drawer's signature can generally pass the loss onto the customer. Selected Answer: Correct Answer: [None Given] False 0 out of 2 points Question 14 Generally, a bank has no obligation to pay a customer's overdrafts. Selected Answer: Correct Answer: [None Given] True 0 out of 2 points Question 15 Jen signs a check "pay to the order of Key" drawn on Jen's account in Little Bank to buy Key's car. Jen asks Little Bank to indicate on the face of the check that it will accept it when Key presents it for payment. If the bank agrees, this will be Selected Answer: Correct Answer: [None Given] a certified check. 0 out of 2 points Question 16 A check is a special type of certificate of deposit. Selected Answer: Correct Answer: [None Given] False Question 17 0 out of 2 points A bank has no right to charge a customer's account for the amount of a stale check. Selected Answer: Correct Answer: [None Given] False 0 out of 2 points Question 18 An oral stop payment order is valid for thirty days. Selected Answer: Correct Answer: [None Given] False Question 19 0 out of 2 points A customer must examine a bank statement and report any discovered forged signature to recover from the bank for the forgery. Selected Answer: Correct Answer: [None Given] True 0 out of 2 points Question 20 Elmo pays First National Bank $1,000 plus a service fee to draw a check on itself made payable to Go Delivery Service. This is Selected Answer: Correct Answer: [None Given] a cashier's check. 0 out of 2 points Question 21 Jen makes a gift of a check to Kilroy who takes it in good faith and without notice of any claim, defense, or defect. With respect to this check, Kilroy is Selected Answer: Correct Answer: [None Given] an ordinary holder. 0 out of 2 points Question 22 A time draft is payable at a definite future time. Selected Answer: Correct Answer: [None Given] True Question 23 0 out of 2 points 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 Selected Answer: Correct Answer: [None Given] an order instrument. 0 out of 2 points Question 24 If a note is payable in thirty days, payment is due by midnight on the thirtieth day. Selected Answer: Correct Answer: [None Given] True 0 out of 2 points Question 25 When an instrument has a forged indorsement, the loss usually falls on the first party to take the instrument. Selected Answer: Correct Answer: [None Given] True 0 out of 2 points Question 26 A check "payable to the order of bearer" is neither an order instrument nor a bearer instrument. Selected Correct Answer: Answer: [None Given] False 0 out of 2 points Question 27 A payee whose name is misspelled on an instrument cannot indorse the instrument. Selected Answer: Correct Answer: [None Given] False 0 out of 2 points Question 28 Petra signs a check payable to Quincy, who indorses the back, gives it to Regional Credit Union, and receives cash. The transfer of the check from Quincy to the credit union is Selected Answer: Correct Answer: [None Given] a negotiation. 0 out of 2 points Question 29 Todd indorses a check, "Pay to Interstate Trucking if they deliver the lumber by May 1, 2010." This is Selected Answer: Correct Answer: [None Given] a restrictive indorsement. 0 out of 2 points Question 30 Ray signs a promissory note for $10,000 in favor of State University (SU). The note does not specify the date of its payment. Ray defaults. In SU's suit to collect on the note, the court will most likely rule in favor of Selected Answer: Correct Answer: [None Given] Ray, because the note is not payable at a definite time or on demand. 0 out of 2 points Question 31 The completion of an originally incomplete instrument in an unauthorized manner is a defense against payment on the instrument to an HDC. Selected Answer: Correct Answer: [None Given] False 0 out of 2 points Question 32 An instrument payable "with interest" must specify a particular rate to be negotiable. Selected Answer: Correct Answer: [None Given] False 0 out of 2 points Question 33 Biff signs a note "payable to the order of County Credit Union." Unless Biff has a valid defense against payment, Biff's liability on this note is Selected Answer: Correct Answer: [None Given] primary. 0 out of 2 points Question 34 Superior Company draws a check payable to Ted. Uri makes a note payable to Vital Finance Corporation. Primarily liable parties include Selected Answer: Correct Answer: [None Given] Uri only. 0 out of 2 points Question 35 EZ Credit Company signs an instrument payable to the order of Flem that states, "The maker of this note at the date of maturity, May 1, 2013, can extend the time of payment, but for no more than a reasonable time." This instrument is Selected Answer: Correct Answer: [None Given] nonnegotiable, because it is not payable within a definite time. 0 out of 2 points Question 36 The time for repayment under an individual's Chapter 11 plan is three or five years, depending on the debtor's family income. Selected Answer: Correct Answer: [None Given] True 0 out of 2 points Question 37 First State Bank holds a mortgage on Gigi's property. Gigi defaults on the debt. The bank forecloses. If the proceeds of the foreclosure sale are insufficient to pay the costs of the sale and the debt, the bank can Selected Answer: Correct Answer: [None Given] obtain a deficiency judgment against Gigi. 0 out of 2 points Question 38 Jay is a surety for Karen's loan from Little Bank. Jay's right to be repaid by Karen after having paid her debt is the right of Selected Answer: Correct Answer: [None Given] reimbursement. 0 out of 2 points Question 39 When two conflicting security interests are unperfected, the first to attach has priority. Selected Answer: Correct Answer: [None Given] True 0 out of 2 points Question 40 Khali's debt to Lew is past due. Lew obtains a judgment against Khali to collect the debt, but Khali refuses to pay. Lew asks the court to order Khali's employer to pay a portion of Khali's paycheck to Lew. This is a request for Selected Answer: Correct Answer: [None Given] an order of garnishment. 0 out of 2 points Question 41 Everyday Loans, Inc., takes possession of Ferbie's stock in Glade Electronics Corporation to perfect Everyday's security interest in the stock. This is Selected Answer: Correct Answer: [None Given] a pledge. 0 out of 2 points Question 42 Computer World (CW), after repossessing a multimedia system from Dave, a consumer, decides to keep the system instead of reselling it. CW sends written notice to Dave. CW can now keep the system Selected Answer: Correct Answer: [None Given] unless Dave objects. 0 out of 2 points Question 43 Rita is a surety for Sue's loan from Total Finance Company. Rita's right to "step into the shoes" of Total Finance, after paying Sue's debt, and exercise any of the Total Finance's rights against Sue is the right of Selected Answer: Correct Answer: [None Given] subrogation. 0 out of 2 points Question 44 The principal duty of a trustee is to liquidate and close up the debtor's estate as quickly as possible. Selected Answer: Correct Answer: [None Given] True 0 out of 2 points Question 45 Quotient Financial Corporation is a secured party with a security interest in property owned by Retail Sales Company. Perfection of this security interest may not protect Quotient Financial against the claim of Selected Answer: Correct Answer: [None Given] a buyer in the ordinary course of business. Question 46 0 out of 2 points The payment of Yves's debt to Zach is guaranteed by Yves's personal property. Their agreement describes Yves's subject property by serial number. To establish Zach's interest, this is Selected Answer: Correct Answer: [None Given] sufficient if it accurately describes the parties' agreement. 0 out of 2 points Question 47 The procedure and content of a Chapter 12 plan are similar to the procedure and content of a Chapter 13 plan. Selected Answer: Correct Answer: [None Given] True 0 out of 2 points Question 48 The payment of Nero's debt to Olly is guaranteed by Nero's personal property. Nero is located in Pennsylvania. Olly communicates to the appropriate state official a security agreement that uses only Quality Engineering, the trade name of Nero's business. To perfect Olly's interest, this is Selected Answer: Correct Answer: [None Given] not sufficient. 0 out of 2 points Question 49 If the proceeds of a foreclosure sale cover the costs and the mortgage debt, any surplus is a windfall to the creditor. Selected Answer: Correct Answer: [None Given] False 0 out of 2 points Question 50 The price that a secured party obtains on a sale of collateral is all that the creditor can recover on the debt. Selected Answer: Correct Answer: [None Given] False Saturday, March 5, 2011 5:25:46 PM EST OK
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