View the step-by-step solution to:

Here are the questions and the subject is regulation CPA: 1- Karen, a business owner, bought a warehouse receipt for goods worth $9,000 from Sonny, a...

Here are the questions and the subject is regulation CPA: 1- Karen, a business owner, bought a warehouse receipt for goods worth $9,000 from Sonny, a merchant, for $7,500. The warehouse receipt was issued “to Tony or order.” Tony had signed his name on the back of the receipt. Karen presented the receipt to the warehouser, who refused delivery believing that Sonny may have stolen the receipt. Which of the following statements is true? A. Karen will prevail if she is a good-faith purchaser of a negotiable document of title covering the goods. B. Sonny, as a subsequent transferor, has no legal obligation to Karen on the document if she is denied the goods. C. Karen’s rights are the same whether the warehouse receipt she purchased is negotiable or nonnegotiable in form. D. Karen, as the holder of a negotiable document of title, is entitled to receive delivery of the goods even if Tony stole the underlying goods. 2- Teff entered Archer’s office and stole from Archer some radios and Archer’s wallet containing identification. Subsequently, representing himself as Archer, Teff induced Bane to purchase one of the stolen radios for a fair price. Bane gave Teff his check made out “Pay to the order of Archer.” Teff endorsed the check “Pay to the order of Crown, Archer” and transferred it to Crown for cash in the amount of the check. Crown endorsed the check “Pay to the order of Fox, Crown” and transferred the check to Fox to be applied to his account. Bane’s check was A. Order paper initially and negotiated by Teff to Crown. B. Nonnegotiable absent a valid endorsement by the real Archer. C. Void from the beginning. D. Bearer paper when Crown took it. 3- Wilson drew a sight draft on Jimmy Foxx (a customer who owed Wilson money on an open account), payable to the order of Burton, one of Wilson’s creditors. Burton presented it to Foxx. After examining the draft as to its authenticity and after checking the amount against outstanding debts to Wilson, Foxx wrote on its face “Accepted--payable in 10 days” and signed it. When Burton returned at the end of 10 days, Foxx told him he could not pay and was hard-pressed for cash. Burton did not notify Wilson of these facts. Two days later when Burton again presented the instrument for payment, Burton was told that Foxx’s creditors had filed a petition in bankruptcy that morning. Which of the following statements is true? A. Foxx was secondarily liable on the draft at its inception. B. Wilson had primary liability on the draft at its inception. C. The instrument in question is a type of demand promissory note. D. Foxx assumed primary liability at the time of acceptance. 4- Which of the following is required for a valid letter of credit? A. That it is irrevocable. B. That it is in a form that is a record and is authenticated. C. That consideration is given.
Background image of page 1
D. That consent by a beneficiary is given to amend or cancel it.
Background image of page 2
Sign up to view the entire interaction

Top Answer

Dear Student Please find the explanations to the options. 11)a- If buyer purchases any goods in good faith he will be... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online