Question

5.      In addition to being in writing, an unconditional order or promise to pay must be for a definite sum of money. To be negotiable under Article 3 of the UCC, an instrument also must meet which of the following requirement(s)

a. it must be payable on demand or at a specified time.

b. it must be made out “to order” or “to bearer”.

c. it must be signed by the maker or the drawer.

d. a, b, and c are all required.

e. only a and c are required.

6.      According to Article 3 of the UCC, a draft is

a. a written order to pay a fixed sum of money that involves three distinct parties: drawer, drawee, and payee.

b. a written order to pay a fixed sum of money that involves two distinct parties: maker and payee.

c. a promise by one party to pay a certain sum of money to another party.

d. an acknowledgment by a bank that it has received money from a customer with a promise from the bank that it will repay the money received at a specified date or upon demand; two parties are involved: a maker and a payee.

e. none of the above.

7.      Under Article 3 of the UCC, to be a holder in due course, the transferee must

a. be in possession of an instrument in the form of either a draft or a check (but not a note) made out “to bearer”.

b. have agreed in writing not to be bound as a contractual assignee.

c. have given value for the negotiable instrument, taken it without knowledge of any defects, and taken the instrument in good faith.

d. provided a signed unconditional writing promising (or order to pay) at a specified time in the future and made out “to order” or “to bearer”.

e. none of the above are required to be a holder in due course.

8.      A creditor is a person or business who

a. lends money to someone.

b. provides credit to someone for the purchase of their goods.

c. provides credit to someone for the purchase of their services.

d. all of the above.

e. a & b only.

Answer 1

5) In addition to being in writing, an unconditional order or promise to pay must be for a definite sum of money. To be negotiable under Article 3 of the UCC, an instrument also must meet which of the following requirement(s)

a) Is payable to the bearer or order at the time it is issued

b) Must be payable on demand at the specified time

c) Must be signed by the maker or drawee

So the Option d will be the correct answer

6) Draft is an order to pay money which involves three parties Drawer, Payee and Drawee. So the Option a is the correct answer.

7) According to UCC, the transferee in holder in due course must have value for it and taken it without any defects and taken the instrument in good faith.

So option c is the correct answer

8) A Creditor is a person who lends money to someone, who provides credit for purchase of goods and also provides credit to someone who purchase their services.

So the Option d will be the correct option