Test%205A - Test 5 True/False Indicate whether the sentence...

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Test 5 True/False Indicate whether the sentence or statement is true or false. ____ 1. An implied warranty of merchantability arises in every sale or lease by a merchant who deals in goods of the kind sold or leased. ____ 2. To succeed in a product liability suit based on negligence, a plaintiff must prove that there was a failure to ex- ercise due care. ____ 3. A negotiable instrument serves as a substitute for cash. ____ 4. A merchant can disclaim an implied warranty of merchantability. ____ 5. Privity of contract between the plaintiff and the defendant is required to bring a product liability suit based on negligence. ____ 6. If a buyer repudiates a contract, the seller cannot recover damages. ____ 7. A notation on an instrument that it is "negotiable" is sufficient to render it negotiable. ____ 8. A holder in due course (HDC) cannot acquire more rights in an instrument than its transferor held. ____ 9. For an instrument to be negotiable, it must be in writing. ____ 10. An instrument that promises to pay "in gold" can be negotiable. Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 11. Gina writes and signs a check payable to "Happy Market." Irma, Happy's manager, indorses the check "For deposit only." This is a. a blank indorsement. b. a qualified indorsement. c. a restrictive indorsement. d. a special indorsement. ____ 12. To obtain office supplies for All-Care Medical 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. c. a qualified promise to set aside a sum of money. d. a restricted promise to deliver goods at a future date. ____ 13. On behalf of Digital Supplies Company, Ed signs an instrument in which he promises to deliver 1,000 feet of cable to First Transactions, Inc., on March 1. This instrument is a. negotiable. b. nonnegotiable, because cable is not a medium of exchange authorized or adopted by a government as currency. c.
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Test%205A - Test 5 True/False Indicate whether the sentence...

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