FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 16: Transferability and Holder in Due Course

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

Berton transfers a draft by signing it and delivering it to Cormac. Berton is​

A) ​an indorser.
B) ​an indorsee.
C) ​a drafter.
D) ​a promisor.

E) All of the above
F) None of the above

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

Raul wants to transfer a check to Schmidt. The check is defective if it​

A) ​has been previously dishonored.
B) ​contains handwritten terms.
C) ​is undated, antedated, or postdated.
D) ​all of the choices.

E) C) and D)
F) None of the above

Correct Answer

verified

Show Answer

Question 3

True/False

Review LaterAdd Note

When an instrument is transferred by negotiation, the transferee becomes a holder.

Under the UCC, a transfer of rights under a contract is a negotiation.

Jess receives a check from Kelly. Without Jess's knowledge, Leo indorses it in his own name and deposits it in his account at Metro Bank. In Jess's subsequent suit against the bank for the money, the court will most likely rule in favor of​

It is possible for a person who does not qualify as an HDC to acquire the rights and privileges of an HDC.

Doyle gives a check to eMarket Finance to buy 100 shares of stock in FabNu Corporation for Doyle. The price of the shares is constantly fluctuating. eMarket asks Doyle to leave the amount of the check blank and allow it to fill in the price when making the purchase. Doyle agrees. eMarket buys the stock when the price is $4,000, but fills in the check for $5,000. The check is negotiated as payment for a $5,000 debt to Guido & Hollis Accountants (G&H), which takes the check in good faith and without notice of eMarket's act. G&H later learns that eMarket was not authorized to fill in the check for $1,000 over the price. Is G&H an HDC? If so, for how much?

Gwen signs a check payable to Hart and gives it to him. Hart indorses the back, and transfers the check to Ingrid. To negotiate the check to Jaime, Ingrid must​

At 1A.M., on the sidewalk in front of EZ Credit Corporation, which is closed, Frank buys a $500 promissory note for $50 from Greg. When presented with Frank's demand for payment, Diane, the maker of the note, could successfully claim that Frank​

An instrument is defective if it has been previously dishonored.

Idina wants to buy a promissory note from Jo. The note is due on April 1. To become an HDC, Idina must buy the note

Mort negotiates an instrument to Nadia. Negotiation is the transfer of an instrument​

Any irregularity on the face of an instrument that calls into question its validity will bar HDC status.

Allie signs a check payable to Bess, who indorses the back, gives it to County Credit Union (CCU) , and receives cash. The transfer of the check from Bess to CCU is​

Sergio makes a gift of a check to Todd who takes it in good faith and without notice of any claim, defense, or defect. With respect to this check, Todd is​

Calvert buys a promissory note from Darin. The note is due on December 5. December 5 is a Sunday. The note is​

A holder takes an instrument for value if he or she inherits an instrument.

Jill, in good faith and for value, gets from Kiley a negotiable bearer instrument. Jill does not know that Kiley stole the instrument. Jill is​

Connie transfers a note by signing it and delivering it to Dana. Dana is​

To avoid the risk of loss from theft, a holder may convert a blank indorsement to a special indorsement.