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Business 71 MW Gunhee Han Homework Questions Chapters 14, 16-20, (6 x 25 random) ID: C _c___ 1. Rita owes $6,000 in unpaid taxes. In the sand of Seaside Beach, she executes an instrument for that amount that otherwise meets the requirements for negotiability. This instrument is likely a. negotiable. b. nonnegotiable, because an instrument must be on paper. c. nonnegotiable, because sand is not sufficiently permanent. d. nonnegotiable, because the government does not appreciate it. P. 416 Be in writing. A writing can be on anything that is readily transferable and has a degree of permanence. _a___ 2. To borrow money to finance the start-up of his business, Bob executes an instrument in favor of City Bank. For the instrument to be negotiable, the signature a. can be anywhere on the instrument. b. must be anywhere on the lower half of the instrument only. c. must be in the lower left-hand corner of the instrument only. d. must be in the lower right-hand corner of the instrument only. P. 416 Be signed by the maker or drawer. The signature can be anyplace on the face of the instrument. _b___ 3. Kelly signs an instrument in favor of Leo that states it is " subject to a certain agreement between Kelly and Mona." This instrument is a. negotiable. b. nonnegotiable, because it is made subject to a separate agreement. c. nonnegotiable, because it refers to a separate agreement. d. nonnegotiable, because Kelly and Mona are not the same persons. P. 416 Be payable to order or to bearer, unless it is a check. An order instrument must identify the payee with reasonable certainty. _d___ 4. Maria signs an instrument payable to the order of National Loans, Inc., "on or before" June 15. This instrument is a. negotiable. b. nonnegotiable, because the maker can move up the payment date. c. nonnegotiable, because moving up the payment date is optional. d. nonnegotiable, because the exact payment date cannot be determined from the face of the instrument. P. 416 Be payable on demand or at a definite time. An instrument is still payable at a definite time, even if it is payable on or before a stated date or within a fixed period sight or if the drawer or maker has an option to extend the time for a definite period. _a___ 5. Julie signs a check payable to the order of Kwik-Mart Stores, Inc., that does not include a date. This check is a. negotiable. b. nonnegotiable, because it does not include a date. c. nonnegotiable, because it is payable to Kwik-Mart. d. nonnegotiable, because it is signed by Julie. P. 416 Any instrument that is payable on sight, presentation, or issue, or that does not state any time for payment, is a demand instrument. _b___ 6. To obtain office supplies for All-Care Auto Clinic, Britney executes a draft in favor of Chris. A draft is a. a conditional promise to pay money. b. an unconditional written order to pay money.... View Full Document

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