This preview shows page 1. Sign up to view the full content.
Unformatted text preview: 5. T F Both a UCC consumer's good faith and a merchant's good faith require both honesty in fact and commercial reasonableness. 6. T F Personal defenses (e.g., fraud in the inducement) are good against the payee; good against either an HDC or a HtHDC are defenses that are universal defenses (i.e., renders the instrument void). 7. T F On a certified check or a cashier's check the drawee signs the front. 8. T F A bank breaches its contract with the drawer if the bank dishonors a stale check. 9. T F All transfer warranties and all presentment warranties may be expressly disclaimed on promissory notes. 10. T F The FTC 3 day rule prohibits the factoring of a merchant's paper (e.g., a merchant's promissory note given in a bargained for exchange for the purchase of inventory from a merchant supplier) until the third day following the date certain of that instrument....
View Full Document
This note was uploaded on 01/12/2010 for the course ECON 1a taught by Professor Ohara during the Fall '07 term at San Jose State University .
- Fall '07