1.
(p. 605) According to the UCC, a signature can be any name, word, mark, or symbol used by a party
to authenticate a writing.
2.
(p. 606) A party who is primarily liable for an instrument must pay without resorting to any other party.
3.
(p. 606) When a bank accepts a check, it is primarily liable for the amount of the check.
4.
(p. 608) The fact that a bank refuses to pay an instrument means that it has been dishonored.
5.
(p. 610) If an accommodation party pays a note for an accommodated party, the accommodation
party has a right of action against the accommodated party to recover the money paid.
6.
(p. 610) If an accommodated party pays a note when it is due, the accommodated party can force any
accommodation party to contribute based upon the number of accommodation parties that exist.
7.
(p. 611) As long as an agent is authorized to sign a negotiable instrument on behalf of a principal, the
agent’s signature can create liability for the principal.
8.
(p. 611) In order for the principal to be held liable when an agent signs a note on behalf of the
principal, the principal’s name must be shown on the instrument.
9.
(p. 615) If a transfer is through endorsement, transfer warranties apply to any future holders; however,
if the transfer does not occur through endorsement, the warranties apply only to the transferee.
10.
(p. 623) If Alice makes a proper tender of the full payment of $1,000 due on Richard’s note on the
note’s due date, but Richard improperly refuses to accept the money, any endorsers are discharged
from liability.
11.
(p. 610) Which of the following was the result on appeal in Heartland State Bank v. American Bank &
Trust, the case in the text involving whether the defending payor bank timely sent notice of dishonor
of a check when it sent notice before midnight on April 11 for a check received on April 10?
12.
(p. 617) Barry wrote a check drawn on his account at ABC Bank for $500 made out to Susie Smith for
payment for yard work. Barry put the check properly addressed to Susie in the U.S. mail. Through
unknown means, a thief obtained the check. The thief altered the name of the payee to Trudy Smith,
and through expertly forged documents opened an account at XYZ Bank and obtained the funds from
Barry’s check along with a number of other stolen checks. When the check was then presented to
ABC Bank for payment, ABC Bank charged Barry’s account in the amount of $500. A few days later,
Susie asked Barry for her money; and, after investigating, he became aware of the situation.
Assuming the court follows the reasoning of the case in the text, Halliburton Energy Services Inc., v.
Fleet National Bank, which of the following is true regarding whether Barry is entitled to a return of his
funds?
13.
(p. 619) Which of the following was the result on appeal in Laborer’s Pension Fund v. A & C Envtl.
Inc., the case in the text in which the defending employer claimed that an agreement entered into
regarding payment of union dues wrongfully required payment for all defendant’s employees when it
should have required payment of dues for only a few employees who were working out– of-town
within the area of the union involved?
14.
(p. 605) The type of liability that occurs based on a person signing a negotiable instrument is referred
to as which of the following?
15.
(p. 605) Which of the following is a type of liability arising on an instrument when the transfer of the
instrument breaches a warranty associated with the instrument?
16.
(p. 605) When a party signs a negotiable instrument, which of the following is true regarding the
position of that party?
17.
(p. 605) Which of the following is true regarding liability on negotiable instruments?
18.
(p. 605) Which of the following is the general rule when it is not possible to determine the status of the
signer of an instrument?
19.
(p. 605) Which of the following promises to pay a set sum to the holder of a promissory note or
certificate of deposit?
20.
(p. 606) Which of the following accepts and signs a draft to agree to pay the draft when it is
presented?
21.
(p. 605) Which of the following person orders the drawee to pay?
22.
(p. 606) Which of the following person signs an instrument to restrict payment of it, negotiate it, or
incur liability?
23.
(p. 606) Which of the following type of liability establishes that the party must pay the amount due on
the instrument if the primarily liable party defaults?
24.
(p. 607) Which of the following must occur for a drawer to become liable on a check?
25.
(p. 607) Under the UCC, how can proper presentment be made?
26.
(p. 607) To hold an endorser secondarily liable on a check, a holder must present a check within
______ days of the endorsement.
27.
(p. 608) When a holder presents an instrument in a timely and proper manner, but acceptance or
payment is refused, the instrument has been ____.
28.
(p. 609) If the party that dishonors an instrument is a collecting bank, when must notice of the
dishonor be given to a secondarily liable party by the collecting bank?
29.
(p. 609) After notice of dishonor is received, how long do parties other than a collecting bank have in
order to give notice of dishonor to a secondarily liable party?
30.
(p. 609) Which of the following is true regarding what is considered a commercially reasonable
manner by which notice of dishonor may be given to a secondarily liable party?
31.
(p. 609) Which of the following is true in the event an instrument contains more than one
endorsement?
32.
(p. 610) A[n] ______ party signs an instrument to provide credit for another party that has also signed
the instrument.
33.
(p. 610) Which of the following is true regarding the liability of an accommodation party?
34.
(p. 610) Which of the following is true regarding how an accommodation party may sign an
instrument?
35.
(p. 611) Which of the following is a party who has authority to act on behalf of and bind another
party?