Ch25-TB2-WBL-10e

Ch25-TB2-WBL-10e - Chapter25 Transferabilityand...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 25 Transferability and  Holder in Due Course N.B.:   TYPE  indicates that a question is new, modified, or unchanged, as  follows. N A question  new  to this edition of the Test Bank. + A question  modified  from the previous edition of the Test Bank, = A question  included  in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS 1. Contract law governs the assignment of negotiable instruments. ANSWER: T PAGE: 495 TYPE: + 2. An instrument “payable to bearer” is transferable but  not  negotiable. ANSWER: F PAGE: 495 TYPE: = 3. An indorsement is required to negotiate a bearer instrument. ANSWER: F PAGE: 495 TYPE: = 251
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
252 TEST BANK 2—UNIT FIVE: NEGOTIABLE INSTRUMENTS 4. An indorsee cannot use the notation “without recourse” to avoid liability for  payment on the instrument. ANSWER: F PAGE: 496 TYPE: + 5. A blank indorsement converts a bearer instrument to an order instrument. ANSWER: F PAGE: 498 TYPE: = 6. A payee whose name is misspelled on an instrument cannot indorse the  instrument. ANSWER: F PAGE: 499 TYPE: = 7. An ordinary holder takes only those rights that a transferor had in an  instrument. ANSWER: T PAGE: 501 TYPE: = 8. An HDC takes a negotiable instrument free of most defenses to it. ANSWER: T PAGE: 501 TYPE: + 9. A holder takes an instrument for value if he or she accepts the instrument  as  security  for a preexisting debt. ANSWER: T PAGE: 503 TYPE: + 10. A holder takes an instrument for value if he or she accepts the instrument  as  payment  for a preexisting debt. ANSWER: T PAGE: 503 TYPE: =
Background image of page 2
CHAPTER 25: TRANSFERABILITY AND HOLDER IN DUE COURSE 253 11. A holder takes an instrument for value by performing the promise for which  the instrument was issued. ANSWER: T PAGE: 503 TYPE: N 12. A person who in good faith acquires a negotiable instrument from a thief  cannot become an HDC. ANSWER: F PAGE: 504 TYPE: = 13. A person who acquires an overdue negotiable instrument is on notice that it  is defective. ANSWER: T PAGE: 506 TYPE: + 14. If a note is payable in thirty days, payment is due by midnight on the thir- tieth day. ANSWER: T PAGE: 506 TYPE: N 15. A person who acquires a check with notice that the drawee bank previously  dishonored it cannot become an HDC. ANSWER: T PAGE: 507 TYPE: N
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
254 TEST BANK 2—UNIT FIVE: NEGOTIABLE INSTRUMENTS 16. Any installment note payment that is less than the amount due will put the  holder on notice that some of the principal is overdue. ANSWER:
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/15/2010 for the course ACCT ACCT40 taught by Professor Birnbaum during the Fall '08 term at CUNY Brooklyn.

Page1 / 14

Ch25-TB2-WBL-10e - Chapter25 Transferabilityand...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online