Question

multiple choice questions

83.       Ollie negotiates an order instrument to Phil by

a.         assignment of its rights under a contract.

b.         delivery with any necessary indorsement.

c.         making an unconditional promise to pay.

d.         presenting it in response to a demand by B.

84.       Lauren transfers an instrument to Miguel in a form and by a means that makes Miguel a “holder.” This is

a.         a holding.

b.         an assignment.

c.         negotiation.

d.         presentment.

85.       Petra signs a check payable to Quincy, who in­dorses the back, gives it to Regional Credit Union, and receives cash. The transfer of the check from Quincy to the credit union is

a.         an assignment.

b.         a negotiation.

c.         a payment.

d.         a sale.

           

86.       Ivy signs a check payable to Jon and gives it to him. Jon in­dorses the back, and transfers the check to Ked. To negotiate the check to Luis, Ked must

a.         write “Ked” on the back.

b.         write “pay to the order of Luis [signed] Ked” on the back.

c.         deliver the check to Luis.

d.         obtain Luis’s signature on the back.

Fact Pattern 25-A1 (Questions A5–A8 apply)

Rollo obtains a check payable to his order from Simone. Rollo signs the back and gives the check to Trey. Trey writes “Pay to Trey” above Rollo’s signature.

87.       Refer to Fact Pattern 25-A1. When Trey writes “Pay to Trey” above Rollo’s signature, Rollo’s signature becomes

a.         a blank indorsement.

b.         a qualified indorsement.

c.         a special indorsement.

d.         a restrictive indorsement.

88.       Refer to Fact Pattern 25-A1. When Trey writes “Pay to Trey” above Rollo’s signature, the check becomes

a.         a bearer instrument.

b.         an order instrument.

c.         a promissory note.

d.         a nonnegotiable instrument.

89.       Refer to Fact Pattern 25-A1. By writing “Pay to Trey” above Rollo’s signature, Trey

a.         avoids the risk of loss from theft of the instrument.

b.         relieves himself from liability on the instrument.

c.         converts the check into a nonnegotiable instrument.

d.         locks the instrument into the bank collection process.

90.       Refer to Fact Pattern 25-A1. After Trey writes “Pay to Trey” above Rollo’s signature, further negotiation of the check

a.         requires Rollo’s re-indorsement and delivery.

b.         requires delivery alone.

c.         requires Trey’s indorsement and delivery.

d.         is not possible.

91.       Velma transfers a note by signing it and delivering it to Woz. Woz is

a.         a delivery person.

b.         an indorsee.

c.         a note passer.

d.         a promisee.

92.       Dora receives a check from Eagle Corporation. Dora in­dorses the check to First National Bank by writing “pay to First Nat’l Bank only” and signing her name. This is

a.         a blank indorsement.

b.         a qualified indorsement.

c.         a restrictive indorsement.

d.         a special indorsement.

93.       Gina writes and signs a check payable to “Happy Market.” Ira, Happy’s manager, indorses the check “For deposit only.” This is

a.         a blank indorsement.

b.         a qualified indorsement.

c.         a restrictive indorsement.

d.         a special indorsement.

           

94.       To pay for investment advice from financial consultants Smith and Jones, Tony signs a check payable to “Smith or Jones.” A proper in­dorsement of the check is

a.         not possible.

b.         “Smith” and “Jones” only.

c.         “Smith” only, or “Jones” only, but not “Smith” and “Jones.”

d.         “Smith” only, or “Jones” only, or “Smith” and “Jones.”

95.       Blythe, an accountant for Credits & Debits, acquires a negotiable instru­ment from Eton by promis­ing to pay its face value in thirty days. Blythe ac­quires the status of an HDC when she

a.         acquires possession of the negotiable instrument.

b.         agrees with Eton to buy the negotiable instrument.

c.         pays the face value due on the instrument.

d.         transfers the instrument to another party.

96.       Jill, in good faith and for value, gets from Kit a check “payable to the order of bearer.” Jill does not know that Kit stole the check. Jill is

a.         an HDC.

b.         not an HDC, because Kit did not acquire the check for value.

c.         not an HDC, because Kit did not acquire the check in good faith.

d.         not an HDC, because the check is a bearer instrument.

97.       Florencia, who is not a GigaBank customer, attempts to cash a check drawn on the bank. The check is considered dishonored if GigaBank

a.         refuses to pay it.

b.         charges a fee to cash it.

c.         asks Florencia for reasonable identification.

d.         asks Florencia to sign a receipt for the payment on the check.

98.       Clem gets a $100 check as a gift from Daria. Clem crudely increases the amount of the check to $1,00—the alteration is obvious—and transfers it to eReady Sets, Inc., in exchange for a 3D HD TV. eReady deposits the check in its bank account at First Town Bank. HDCs of this check include

a.         Clem, eReady, and First Town Bank.

b.         Clem only.

c.         eReady and First Town Bank only.

d.         none of these parties.

99.       Enter answer “A”

100.    Enter answer “A”

Answer 1

answer-

83 - option .B is correct because An indorsement on a negotiable instrument, such as a check or a promissory note, has the effect of transferring all the rights represented by the instrument to another individual.

84- option C is correct because negotiation is the action or process of transferring legal ownership of a document & Lauren transfers an instrument to Miguel.

85- option B is correct because check is the negotiable instrument under Negotiable Instruments Act, "A negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer.

86- option c is correct because Jon in­dorses the back, and transfers the check to Ked. so ked is the owner of that check so to negotiate it to Luis, Ked must deliver the check to Luis.

87- option C is correct

88- option B is correct

89- option A is correct

90- option C is correct

as EA, i can answer one out of multiple questions or 4 subparts of a single question but i tried to answer 4 with explanation & 4 without explaination for your help rest you can post them seperatly.hope these answers would help you.good luck & rate.