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LEAf09ExC_Quiz_negot_instruments

LEAf09ExC_Quiz_negot_instruments - 5 T F Both a UCC...

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LAWS 3940 "Legal & Ethical Applications" EXTRA CREDIT QUIZ LAWS 3940 O'Hara © 2009 Page 1 of 1 _________________________ print name as your signature INSTRUCTIONS: A. Only answers on the blue computer graded answer sheet count. B. The maximum extra credit points available on this quiz is 5% of the course credit. C. This quiz is graded asymmetrically . Five and fewer correct answers earn zero extra credit . Six or seven correct answers earn 1% extra credit . Eight, nine, or ten correct answers earn the full 5% extra credit . D. Since this quiz is extra credit, no appeals permitted of the grading of this quiz. QUESTIONS: 1. T F All negotiable instruments are written and signed. 2. T F An indorsement that is conditional renders a draft voidable; but it renders a promissory note void. 3. T F An issue of a negotiable instrument to a holder is a negotiation. 4. T F A negotiable instrument requires "value" rather than "consideration"; but, to become an HDC the negotiation must be for consideration.
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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....
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