1.
(p. 564)
A currency or cash substitution is a relatively new development in the law arising in the
20th century.
2.
(p. 565)
A note is a promise, by the maker of the note, to pay a payee.
3.
(p. 565)
A draft is an order by a drawer to a drawee to pay a payee.
4.
(p. 568)
If an instrument fails to qualify as a negotiable instrument, that means that the
instrument fails to be an enforceable contract.
5.
(p. 564)
A negotiable instrument must be a conditional order to pay.
6.
(p. 571)
The law does not permit an oral negotiable instrument.
7.
(p. 571)
An automated signature satisfies the UCC requirement that the signature of the creator
appear in order for an instrument to be negotiable.
8.
(p. 574)
In order to satisfy the requirement of negotiability that payment be at a time certain or on
demand, acceleration of payment is not allowable.
9.
(p. 573)
Even the mention of another document in an instrument prevents the instrument from
being negotiable.
10.
(p. 575)
The words “pay to cash” are sufficient words of negotiability.
11.
(p. 570)
All negotiable documents may be in electronic format.
12.
(p. 566–567)
Suzanne arranged with ABC Bank for a revolving line of credit up to $50,000 for
her antique shop. The bank also required that she provide a promissory note promising payment
of $50,000 to the bank or as much as may be outstanding in amounts owed to the bank payable
on demand. The note allowed for partial early prepayment and for interest after default. A few
months later, although Suzanne was not in default, the bank canceled the line of credit and
demanded payment of all amounts due based on the promissory note. If the reasoning of the
case in the text
Reger Development, LLC v. National City Bank
is followed, which of the following
is the most likely result of the dispute between Suzanne and ABC Bank?
13.
(p. 566)
Which of the following is true regarding payment on a time instrument?
14.
(p. 576)
Which of the following is true regarding negotiable instruments in the European Union?
15.
(p. 576)
Which of the following was the ruling of the court in the Case Opener regarding the
gambler who wrote bad checks to a casino to purchase markers and then tried to avoid payment
on the basis of an oral agreement by which a casino host told the gambler that he already had
sufficient remaining casino credit to receive the markers?
16.
(p. 574)
Which of the following is true regarding negotiation of an instrument?
17.
(p. 564)
Which of the following is known as a substitute for cash?
18.
(p. 568)
Which of the following is true if an instrument fails to qualify as a negotiable instrument?
19.
(p. 568–569)
Which of the following was the result in
Samuel James Thompson v. First Citizens
Bank & Trust Co.,
the case in the text in which the parties disagreed as to whether an instrument
referenced as a certificate of deposit was actually negotiable?
20.
(p. 564)
Which of the following is a written document containing the signature of the creator that
makes an unconditional promise or order to pay a sum certain in money at either a time certain or
on demand?
21.
(p. 564)
Which of the following is an example of a negotiable instrument?
22.
(p. 564)
The ancient ____, or law of merchants, of ______ recognized that agreements could be
paid for with documents that promised payment and that these documents themselves could
then be circulated as a substitute for money.
23.
(p. 568)
Which of the following is true when an instrument fails to meet the technical
requirements necessary to qualify as a negotiable instrument?
24.
(p. 569)
Which of the following is true regarding simple contracts as compared to negotiable
instruments?
25.
(p. 564)
Documents used as payments to facilitate commercial transactions were originally
generically called ____.