Question 1

A promissory note must name a specific payee to be negotiable.​

Accepted Answer

A) True 
 B)False

Question 2

On a cashier's check, the bank is the drawer.

Accepted Answer

A) True 
 B)False

Question 3

To be negotiable, an instrument must have portability.

Accepted Answer

A) True 
 B)False

Question 4

With respect to negotiability, a mere reference to another writing or record makes a promise conditional.

Accepted Answer

A) True 
 B)False

Question 5

Rubber stamp signatures can be legally binding signatures.

Accepted Answer

A) True 
 B)False

Question 6

Camille signs an instrument in favor of Donald that states it is "subject to a certain agreement between Camille and Enzo." This instrument is

Accepted Answer

A)   ​negotiable.
B)   ​not negotiable, because it is made subject to a separate agreement.
C)   ​not negotiable, because it refers to a separate agreement.
D)   ​nonnegotiable, because Camille and Enzo are not the same persons.E) C) and D)
F) All of the above

Question 7

For an instrument to be negotiable, it must not contain an express promise or order to pay.

Accepted Answer

A) True 
 B)False

Question 8

On May 1, Mia signs a check that is payable to the order of Nicole and that is dated July 1. This check is

Accepted Answer

A)   ​negotiable.
B)   ​nonnegotiable, because it is payable to a corporation.
C)   ​nonnegotiable, because it is postdated.
D)   ​nonnegotiable, because it is signed by the drawer.E) None of the above
F) B) and D)

Question 9

A symbol can serve as a valid signature.

Accepted Answer

A) True 
 B)False

Question 10

A sight draft may be payable on acceptance.​

Accepted Answer

A) True 
 B)False

Question 11

On behalf of Bubbly Drinks Company, Calvin signs an instrument in which he promises to deliver 100 cases of soda as payment to Dispatch & Delivery, Inc., on April 1. This instrument is

Accepted Answer

A)   ​negotiable.
B)   ​not negotiable, because soda is not a medium of exchange authorized or adopted by a government as currency.
C)   ​not negotiable, because it does not identify a specific soda.
D)   ​not negotiable, because it does not recite any consideration.E) A) and D)
F) A) and C)

Question 12

On a sheet of paper, Elle writes, without her signature, "I acknowledge that I owe Frank $600, payable out of the proceeds of the sale of my car, a 1995 Honda Civic, which I promise to advertise 'For Sale' next week. Payment is to be made on or before six months from today." What type of instrument is this? Is it negotiable? If not, why not?

Accepted Answer

This instrument is a promissory note, bu...

Question 13

With respect to negotiability, the location of a signature on a document is important.

Accepted Answer

A) True 
 B)False

Question 14

Rico agrees to buy a bicycle from Salvatore for $250. Salvatore agrees to deliver the bike on September 1. Rico writes a draft for $250 payable to Salvatore on September 1. This is

Accepted Answer

A)   ​a certificate of deposit.
B)   ​a time draft.
C)   ​a sight draft.
D)   ​a promissory note.E) A) and B)
F) B) and C)

Question 15

A personal check cannot be a negotiable instrument.

Accepted Answer

A) True 
 B)False

Question 16

To be negotiable, an order to pay must be addressed to only one person.

Accepted Answer

A) True 
 B)False

Question 17

Gwen deposits $5,000 with Home State Bank on July 1, 2016. Home State Bank promises to repay Gwen the $5,000 plus 3 percent annual interest on July 1, 2021. Home State Bank issued to Gwen

Accepted Answer

A)   ​a certificate of deposit.
B)   ​a check.
C)   ​a nonnegotiable instrument.
D)   ​a trade acceptance.E) B) and C)
F) A) and D)

Question 18

The transfer of a negotiable instrument from one person to another is governed by Article 2 of the Uniform Commercial Code.

Accepted Answer

A) True 
 B)False

Question 19

On a trade acceptance, the drawer is also the drawee.

Accepted Answer

A) True 
 B)False

Question 20

To borrow funds to finance his business, Rollo executes an instrument in favor of Security Bank. For the instrument to be negotiable, the signature must be

Accepted Answer

A)   ​anywhere on the instrument.
B)   ​anywhere on the lower half of the instrument only.
C)   ​in the lower left-hand corner of the instrument only.
D)   ​in the lower right-hand corner of the instrument only.E) C) and D)
F) A) and C)

Exam 25: Negotiable Instruments

On May 1, Mia signs a check that is payable to the order of Nicole and that is dated July 1. This check is

Correct Answer
verified

The transfer of a negotiable instrument from one person to another is governed by Article 2 of the Uniform Commercial Code.

Correct Answer
verified

On behalf of Bubbly Drinks Company, Calvin signs an instrument in which he promises to deliver 100 cases of soda as payment to Dispatch & Delivery, Inc., on April 1. This instrument is

Correct Answer
verified

Correct Answer
verified
This instrument is a promissory note, bu...
View Answer

Camille signs an instrument in favor of Donald that states it is "subject to a certain agreement between Camille and Enzo." This instrument is

Correct Answer
verified

A promissory note must name a specific payee to be negotiable.

Correct Answer
verified

A sight draft may be payable on acceptance.

Correct Answer
verified

For an instrument to be negotiable, it must not contain an express promise or order to pay.

Correct Answer
verified

Rubber stamp signatures can be legally binding signatures.

Correct Answer
verified

On a cashier's check, the bank is the drawer.

Correct Answer
verified

Gwen deposits $5,000 with Home State Bank on July 1, 2016. Home State Bank promises to repay Gwen the $5,000 plus 3 percent annual interest on July 1, 2021. Home State Bank issued to Gwen

Correct Answer
verified

To be negotiable, an instrument must have portability.

Correct Answer
verified

With respect to negotiability, the location of a signature on a document is important.

Correct Answer
verified

To be negotiable, an order to pay must be addressed to only one person.

Correct Answer
verified

On a trade acceptance, the drawer is also the drawee.

Correct Answer
verified

With respect to negotiability, a mere reference to another writing or record makes a promise conditional.

Correct Answer
verified

Rico agrees to buy a bicycle from Salvatore for $250. Salvatore agrees to deliver the bike on September 1. Rico writes a draft for $250 payable to Salvatore on September 1. This is

Correct Answer
verified

A personal check cannot be a negotiable instrument.

Correct Answer
verified

To borrow funds to finance his business, Rollo executes an instrument in favor of Security Bank. For the instrument to be negotiable, the signature must be

Correct Answer
verified

A symbol can serve as a valid signature.

Correct Answer
verified

Exam 25: Negotiable Instruments

On May 1, Mia signs a check that is payable to the order of Nicole and that is dated July 1. This check is

Correct AnswerverifiedShow Answer

The transfer of a negotiable instrument from one person to another is governed by Article 2 of the Uniform Commercial Code.

Correct AnswerverifiedShow Answer

On behalf of Bubbly Drinks Company, Calvin signs an instrument in which he promises to deliver 100 cases of soda as payment to Dispatch & Delivery, Inc., on April 1. This instrument is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThis instrument is a promissory note, bu...View AnswerShow Answer

Camille signs an instrument in favor of Donald that states it is "subject to a certain agreement between Camille and Enzo." This instrument is

Correct AnswerverifiedShow Answer

A promissory note must name a specific payee to be negotiable.​

Correct AnswerverifiedShow Answer

A sight draft may be payable on acceptance.​

Correct AnswerverifiedShow Answer

For an instrument to be negotiable, it must not contain an express promise or order to pay.

Correct AnswerverifiedShow Answer

Rubber stamp signatures can be legally binding signatures.

Correct AnswerverifiedShow Answer

On a cashier's check, the bank is the drawer.

Correct AnswerverifiedShow Answer

Gwen deposits $5,000 with Home State Bank on July 1, 2016. Home State Bank promises to repay Gwen the $5,000 plus 3 percent annual interest on July 1, 2021. Home State Bank issued to Gwen

Correct AnswerverifiedShow Answer

To be negotiable, an instrument must have portability.

Correct AnswerverifiedShow Answer

With respect to negotiability, the location of a signature on a document is important.

Correct AnswerverifiedShow Answer

To be negotiable, an order to pay must be addressed to only one person.

Correct AnswerverifiedShow Answer

On a trade acceptance, the drawer is also the drawee.

Correct AnswerverifiedShow Answer

With respect to negotiability, a mere reference to another writing or record makes a promise conditional.

Correct AnswerverifiedShow Answer

Rico agrees to buy a bicycle from Salvatore for $250. Salvatore agrees to deliver the bike on September 1. Rico writes a draft for $250 payable to Salvatore on September 1. This is

Correct AnswerverifiedShow Answer

A personal check cannot be a negotiable instrument.

Correct AnswerverifiedShow Answer

To borrow funds to finance his business, Rollo executes an instrument in favor of Security Bank. For the instrument to be negotiable, the signature must be

Correct AnswerverifiedShow Answer

A symbol can serve as a valid signature.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
This instrument is a promissory note, bu...
View Answer

Correct Answer
verified

A promissory note must name a specific payee to be negotiable.

Correct Answer
verified

A sight draft may be payable on acceptance.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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