BLAW24 - Chapter 24 The Function and Creation of Negotiable...

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Chapter 24 The Function and Creation of Negotiable Instruments Fact Pattern 24-1A (Questions A1–A2 apply) Flik draws a check payable to “GrocMart” to buy groceries. A1. Refer to Fact Pattern 24-1A. Flik’s check is most likely a. a certificate of deposit. b. a negotiable instrument . c. a promise to pay. d. a promissory note. Fact Pattern 24-1B (Questions B1–B2 apply) Dominion Sales Ltd. in Canada and Eagle Buying Company in the United  States enter a contract for a sale of forestry products. Dominion draws a draft  unconditionally ordering Great Federal Bank, Eagle’s bank, to pay $60,000 to  Dominion’s order in sixty days. Eagle signs and dates the draft. B1. Refer to Fact Pattern 24-1B. This instrument is a. a banker’s acceptance. b. a nonnegotiable instrument. c. a promissory note. d. a trade acceptance. Fact Pattern 24-1A (Questions A1–A2 apply) Flik draws a check payable to “GrocMart” to buy groceries. A2. Refer to Fact Pattern 24-1A. With respect to Flik’s check, GrocMart is a. the drawee. b. the drawer. c. the maker. d. the payee. Fact Pattern 24-1B (Questions B1–B2 apply) Dominion Sales Ltd. in Canada and Eagle Buying Company in the United  States enter a contract for a sale of forestry products. Dominion draws a draft  unconditionally ordering Great Federal Bank, Eagle’s bank, to pay $60,000 to  Dominion’s order in sixty days. Eagle signs and dates the draft. B2. Refer to Fact Pattern 24-1B. With respect to this instrument, Dominion is a. the banker. b. the maker.
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c. the payee . d. the trader. Fact Pattern 24-2A (Questions A3–A4 apply) Quantity  Sales   Corporation   and  Resources   Purchasing   Company  enter  a  contract   for   a   sale   of   processed   silver.   Quantity   Sales   draws   a   draft  unconditionally ordering Resources Purchasing to pay $50,000 to Quantity  Sales’s order in sixty days. Resources Purchasing signs and dates the draft. A3. Refer to Fact Pattern 24-2A. This instrument is a. a banker’s acceptance. b. a nonnegotiable instrument. c. a promissory note. d. a trade acceptance. B3. Beck draws a check payable to “County Farm Supply” to buy a quantity of fertilizer to deposit in Beck’s field. This check is a. a certificate of deposit. b. a draft . c. a promise to pay. d. a promissory note. Fact Pattern 24-2A (Questions A3–A4 apply) Quantity  Sales   Corporation   and  Resources   Purchasing   Company  enter  a  contract   for   a   sale   of   processed   silver.   Quantity   Sales   draws   a   draft  unconditionally ordering Resources Purchasing to pay $50,000 to Quantity  Sales’s order in sixty days. Resources Purchasing signs and dates the draft. A4.
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BLAW24 - Chapter 24 The Function and Creation of Negotiable...

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