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Unformatted text preview: Chapter 25 T ransferability and Holder in Due Course A1. Ollie negotiates an order instrument to Phil by a. assignment of its rights under a contract. b. delivery with any necessary indorsement. c. making an unconditional promise to pay. d. presenting it in response to a demand by B. B1. Vladimir negotiates a bearer instrument to Wendy by a. assignment. b. delivery. c. presenting it in response to a demand by Wendy. d. promising to pay. A2. Lauren transfers an instrument to Miguel in a form and by a means that makes Miguel a “holder.” This is a. a holding. b. an assignment. c. negotiation. d. presentment. B2. Yves negotiates an instrument to Zack. Negotiation is the transfer of an instrument a. for valuable consideration under a contract. b. in a form and by a means that makes the transferee a holder. c. pursuant to preliminary contract discussions. d. without the payment of a recognized medium of exchange. A3. Petra signs a check payable to Quincy, who indorses the back, gives it to Regional Credit Union, and receives cash. The transfer of the check from Quincy to the credit union is a. an assignment. b. a negotiation. c. a payment. d. a sale. B3. Eve possesses an instrument that is “payable to bearer.” She loses it. Flik finds it. On this instrument, Flik may a. collect payment. b. not collect payment, because he did not give value for it. c. not collect payment, because he found it. d. not collect payment, because he is not the “bearer.” A4. Ina signs a check payable to Jan and gives it to her. Jan indorses the back, and transfers the check to Ked. To negotiate the check to Lois, Ked must a. write “Ked” on the back and deliver the check to Lois. b. write “pay to the order of Lois [signed] Ked” on the back and deliver the check to Lois. c. only deliver the check to Lois. d. transfer the check through the drawee bank. B4. Dona transfers an instrument to First National Bank. This transfer is not a negotiation unless a. Donna is an HDC. b. First National Bank is an HDC. c. the instrument is a negotiable instrument. d. the instrument is an order instrument. A5. Ralph wants to transfer an instrument to Sigrid that requires Ralph’s indorsement, but there is no room on the instrument. Ralph a. can attest in writing that he would sign the instrument if possible. b. cannot transfer the instrument to Sigrid. c. can sign an allonge and affix it to the instrument. d. can sign a separate piece of paper and file it for later reference....
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- Spring '11
- Promissory note, Negotiable instrument, Bearer instrument, east bank, First Bank