EXAM__3_-_SPRING_2000 - 1 THE GRADING EXAM #3 SPRING 2000...

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THE GRADING EXAM #3 – SPRING 2000 1. PART #1 – TRUE OR FALSE QUESTIONS True: A , False : B , Maybe: Maybe A or Maybe B 1. B The delivery of a personal check to a creditor for the amount of a debt amounts to payment of the debt. 2. A A customer whose negligence has substantially contributed to the making of a forged check, such as by an employee, is preclude from asserting a claim for its money back from the bank on the forgery. 3. A On every payment of a postdated check before its date, a bank is liable in damages to the customer who wrote the check. 4. B If your employee writes a payroll check payable to a fictitious employee, keeps the check, endorses the check in the fictitious name, and cashes it, you will be able to recover the amount of the check from your bank. 5. A A bank’s requirement as to giving notice to prior endorsers notice of dishonor of a check deposited with it is different from everyone else’s requirement. 6. A A handwritten signature is not required to authenticate a negotiable instrument. 7. A Inherently dangerous products, such as butter (cholesterol in it causes arteries to clog) and salt (raises blood pressure), can not be the basis of product liability claims by the people who consumed them. 8. A The Holder-In-Due-Course-Rule of the Federal Trade Commission in the contemporary legal issue applies only to obligations financing the purchase of consumer goods and services. 9. B The law that requires banks to make funds available to customers within a certain schedule (the contemporary legal issue referred to in Chapter 25) is a State Law passed in every state. 10. B Merchant sellers can limit all consequential damages for breach of a warranty on items sold. 11. B A person who is not using a defective product, but who is harmed by it, may not recover damages from the seller under product liability law in the same way as if she had been using it. 12. B
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This note was uploaded on 04/15/2008 for the course BLAW 3311 taught by Professor Boykin during the Spring '07 term at UT Arlington.

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EXAM__3_-_SPRING_2000 - 1 THE GRADING EXAM #3 SPRING 2000...

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