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36.
(p. 611) Violet has authority to act on behalf of and bind Robert. Which of the following legal term
describes Robert's position?
37.
(p. 612) Which of the following results in liability for the principal because the principal approved of an
unauthorized agent's signature?
38.
(p. 612) Which of the following is the most likely result if an agent admits to the principal that a check
for the principal was forged by the agent and placed into the agent's bank account, but the principal
does nothing until two months later after the agent leaves town with the funds?
39.
(p. 614) When, if ever, will a party's negligence block a party from escaping liability for an
unauthorized signature?
40.
(p. 614) Carl, without Eddie's knowledge, impersonates Eddie and thereby convinces Connie, who
has never seen Eddie, to write a check to Eddie for upcoming yard work. Carl then forges Eddie's
name and deposits the check into his, Carl's, account. Which of the following is true regarding
whether Connie will be liable for the amount of the check?
41.
(p. 615) Zachary, who has been authorized to write a check from a company account to pay
employees, draws bonus checks from the company account for five fictitious employees, endorses
the checks in their names, and deposits those into his own bank account. Which of the following is
true regarding whether the company will be required to take the loss on the checks?
42.
(p. 615) Which of the following is true regarding types of warranty liability?
43.
(p. 617) Which of the following is true regarding the warranty or warranties applicable if an instrument
is not an unaccepted draft presented to a drawee?
44.
(p. 618) Real defenses apply to ____, whereas personal defenses do not apply to ____.
45.
(p. 618) When a party is tricked into signing a negotiable instrument without having a chance to
determine that it is, in fact, a negotiable instrument, the party can claim _______.
46.
(p. 624) Which of the following was the result on appeal in the Case Opener in which the plaintiff
optometrist sued the defending bank for cashing over 500 checks that his receptionist fraudulently
embezzled through forging his signature?
47.
(p. 622) When a party's liability for a negotiable instrument is terminated, this party's liability has been
____.
48.
(p. 623) Which of the following occurs when a former holder of an instrument has the instrument
transferred back to him or her by negotiation or other means?
49.
(p. 618) Which of the following is not a real defense to enforcement of a negotiable instrument?
50.
(p. 623) Which of the following is false regarding means by which an instrument may be cancelled by
a person entitled to enforce it?
51.
(p. 606) Who is the drawer of the check Doreen presented to Betty at Hot Dresses Inc.,?
52.
(p. 606) Who is the drawee of the check Doreen presented to Hot Dresses Inc.,?
53.
(p. 606-607) Who among the following was the holder of the check?
54.
(p. 607) As defined in the UCC, under which of the following circumstances would presentment have
occurred?
55.
(p. 607) Which of the following is the most likely result of Betty's request that Doreen pay the amount
due on the check?
56.
(p. 608) Which of the following is true regarding when, and if, the note was initially dishonored?
57.
(p. 606) Which of the following is true regarding Henry's entitlement to payment from Millie?
58.
(p. 606) Which of the following is true regarding Anne's statement to Henry that he must seek
recovery from Bob?
59.
(p. 609) Which of the following is the likely result if Henry sues Anne, Bob, and Millie?
60.
(p. 618-619) Which of the following is the most likely result if Henry refuses payment on the
promissory note that was endorsed to Richard claiming that he never signed it?
61.
(p. 620) Assuming that Henry admits the modification but it is not considered fraudulent, which of the
following is true regarding Taylor's liability on the note?
62.
(p. 620) Which of the following is true regarding Martha's liability to Henry?
63.
(p. 618) Set forth the eight real defenses and explain their significance.
64.
(p. 608) Effie received a check written by Sam whom she did not really trust. Accordingly, she rushed
to his bank to get the check cashed. The bank told her that presentment would be considered as
being made on the next business day and refused to immediately give her the funds. The bank
representative told her that the bank's cut-off hour was 2:00 p.m. and that she did not present the
check until 3:00 p.m. Effie was upset and told the bank that it wrongfully dishonored the check in
violation of provisions of the UCC. Discuss the rights of the parties.
65.
(p. 609) What are the requirements for a holder to turn to secondarily liable parties?
66.
(p. 611-612) Discuss whether an authorized agent can be held personally liable on a note if the
agent did not sign his or her own name. Further discuss the kind of personal liability an agent has
who simply signs his or her name to an instrument.
67.
(p. 615) Set forth the five items that a party warrants when the party transfers an instrument for
consideration.
