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1.
(p. 583)
In Russia a transaction involving a promissory note is a legitimate documentary
transaction.
2.
(p. 586)
A restrictive endorsement may limit the transferability of the instrument.
3.
(p. 586)
Once an instrument is negotiable, it remains negotiable.
4.
(p. 586)
An endorsement to prohibit further endorsement prohibits further transfer.
5.
(p. 587)
A conditional endorsement destroys negotiability.
6.
(p. 590)
A payee may not be a holder in due course.
7.
(p. 590)
A party cannot be a holder in due course of a non-negotiable instrument.
8.
(p. 593)
Receiving an instrument as a gift satisfies the requirement of taking an instrument for
value.
9.
(p. 594)
A bank has given value for a negotiable instrument to the extent that the bank has a
security interest in the instrument.
10.
(p. 596)
A time instrument becomes overdue at any date after the expressed due date on the
instrument.
11.
(p. 597)
An instrument is dishonored when a party refuses to pay the instrument such as when a
bank refuses to pay because insufficient funds exist.
12.
(p. 587)
Which of the following was the result in
Mid-Atlantic Tennis Courts Inc., v. Citizens Bank
and Trust Company of Maryland
, the case in the text in which an employee of the plaintiff
fraudulently deposited into his own account at the defending bank checks for which the plaintiff
was payee, and the plaintiff sued the defending bank for checks endorsed by it "for deposit only"
or with no endorsement?
13.
(p. 590)
Helen worked for ABC Company as the company treasurer. She took 20 of ABC
Company's checks, labeled as belonging to ABC Company. Over the course of one year, she
signed and mailed the checks to American Express, her own credit card company, to pay her own
credit card debt. Assuming the court follows the case in the text,
Watson Coatings Inc., v.
American Express Travel Services Inc.
, which of the following is the most likely result in a lawsuit
by ABC Company against American Express to recover the amounts of the checks?
14.
(p. 595)
Which of the following did the court determine on appeal in
Wawel
Savings Bank v. Jersey
Tractor Trailer Training Inc.
, the case in the text in which a lender who perfected an interest in a
debtor's collateral claimed to have priority in bankruptcy over an entity who later entered into an
agreement whereby it purchased rights to the debtor's accounts receivables?
15.
(p. 582)
Which of the following is a written document signed by the maker or drawer with an
unconditional promise or order to pay a certain sum in money on demand or at a specified time to
the order of bearer?
16.
(p. 583)
In the process of negotiation, what is meant by the term "delivery"?
17.
(p. 583)
Order paper must be ______ as well as _____ to be negotiated.
18.
(p. 582)
Which of the following is an instrument payable to a specific, named payee?
19.
(p. 582)
Which of the following is an instrument payable to cash or whoever is in possession of
the instrument?
20.
(p. 582)
For negotiation, which of the following types of paper require only delivery of the
instrument to the holder by the payee?
21.
(p. 582)
For negotiation, which of the following types of paper require delivery and an
endorsement by the holder?
22.
(p. 583)
Which of the following is the term for a person creating an endorsement?
23.
(p. 583)
A(n) ___________ is a person receiving an endorsement.
24.
(p. 583)
If there is no room on an instrument for an endorsement or if all the room has been taken
by previous endorsements, a(n) ______ may be attached.
25.
(p. 583)
Which of the following are types of unqualified endorsements?
26.
(p. 583-584)
Which of the following is the payee's or last endorsee's signature and nothing
else?
27.
(p. 584)
What is the effect of an unqualified, blank endorsement?
28.
(p. 584)
A(n) ______ endorsement is the endorser's signature along with a named endorsee.
29.
(p. 584)
The words, "Pay to Allan Smith" followed by the endorser's signature create a(n) ______
endorsement.
30.
(p. 585)
Which of the following is a version of a qualified endorsement?
31.
(p. 585)
Which of the following results in an endorsement is considered qualified?
32.
(p. 586)
Which of the following types of endorsements attempt to either limit the transferability of
the instrument or control the manner of payment under the instrument?
