Business Law: Exam 3 Material

Question 0

2 examples of promises to pay are?

Answer 0

Promissory notes

Certificate of Deposits

Question 1

Document drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit ____. Negotiable instrument

Answer 1

Commercial paper

Question 3

A promise to pay:

Acknowledgement by a bank of receipt of money with an agreement of repayment is ____.

Answer 3

Certificate of deposit “CD”

Question 4

Person who is executes a promissory note ____.

Answer 4

Maker

Question 5

Party to whom any negotiable instruments is made payable is ____.

Answer 5

Payee

Question 6

A promise to pay:
Unconditional; a promise in writing made by one party to another, signed by the maker, engaging to pay on demand or at a particular time, a particular sum of money to order or to bearer, one example of commercial paper is ____.

Answer 6

Promissory note

Question 7

Ordinary check which an official of a bank has accepted by writing across the face of the check the word “certified” and signed is a ____.

Answer 7

Certified check

Question 8

Check drawn on a bank’s own funds, signed by a responsible bank official or a cashier, bank may use to pay its own obligations, may be used by someone in lieu of their own personal check is a ____.

Answer 8

Cashier’s check

Question 9

Checks drawn by one bank on another is a ____.

Answer 9

Bank draft

Question 10

Check with voucher attached, voucher lists it, is of an invoice being paid by the check is ____

Answer 10

Voucher check

Question 11

An order to pay:
Written order signed by one person requiring the person to whom addressed to pay a particular sum of money, to order or to bearer, on demand at a certain time is ____. This is the second example of commercial paper

Answer 11

Draft

Question 12

Person who executes any draft or check is ____.

Answer 12

Drawer

Question 13

Person, company, or financial institution ordered to pay a draft or check is ____.

Answer 13

Drawee

Question 14

Party to whom any negotiable instruments is made payable is the ____.

Answer 14

Payee

Question 15

A commercial paper made payable to the order of some named party. Word order or its equivalent must be used, may be paid only to the person to whom it has been properly endorsed is ____.

Answer 15

Order paper
Or
“Personal Check”

Question 16

A commercial paper made payable to any person in possession of it is ____ paper

Answer 16

Bearer

Question 17

Act of transferring ownership of a negotiable instrument to another party is a ___.

Answer 17

Negotiation

Question 18

Person who has possession of a delivered negotiable instrument is a ____.

Answer 18

Holder

Question 19

The signature or statement of purpose by the owner on the back of a negotiable instrument, which indicates future control of the instrument is an____.

Answer 19

Endorsement

Question 20

The payee of a note or draft transferring the instrument to another party is an ____.

Answer 20

Endorser

Question 21

Person who becomes the holder of a negotiable instrument by endorsement which names him/her as the person to whom the instrument is negotiated

Answer 21

Endorsee

Question 22

Having no words other than signature of endorser is ____.

“Mary A. Johnson”

Answer 22

Blank endorsement

Question 23

An endorsement which designates the particular person to whom payment is to be made _____.
“Pay to the Order John Q. Jones”

Answer 23

Special endorsement

Question 24

An endorsement which prevents the use of the instrument for anything except stated use is ____.
“For deposit only”

Answer 24

Restrictive Endorsement

Question 25

Limits the liability; endorser signs the bill or promissory note and adds “without recourse”; this limits the endorsers liability; Endorsee accepts the liability is _____.

Answer 25

Qualified endorsement

Question 26

The holder must take the instrument in good faith and for face value; must have no notice that instrument is overdue or has been dishonored; at time of negotiation, no notice of any defense against or adverse claim to the instrument are ____ for a holder in due course.

Answer 26

Requirements

Question 27

Right to collect amount due; right to be free from the defense of no considerations are ____ of a holder in due course.

Answer 27

Rights

Question 28

Transfer of commercial paper; warrants existence of certain facts specified by UCC (uniform commercial code) is ____.

Answer 28

Transferor’s warranties

Question 29

Transferor entitled to enforce the instrument; all signatures genuine or authorized; instruments has not been altered; instrument not subject to defense or claim of any party; transferors has no knowledge of insolvency proceedings with maker, acceptor, or drawer of unaccpeted draft.

Answer 29

Transferor’s warranties

Question 30

Transfer of possession, but not title of personal property by one party to another, under agreement is a _____ agreement.

Answer 30

Bailment

Question 31

Party who gives up possession, but not title of property is ____.

Answer 31

Bailor

Question 32

Party who acquires possessions, but not title of personal property is ____.

Answer 32

Bailee

Question 33

Classifications of bailments are ____ and ____.

Answer 33

Ordinary

Extraordinary

Question 34

Those held to “normal” standard of care for bailed property is the ____.

Answer 34

Ordinary bailment

Question 35

Those held to higher than normal standard of care for bailed property is ____.
Common carries
Hotel keepers
Funeral directors

Answer 35

Extraordinary bailment

Question 36

Sole benefit of bailor
Sole benefit of Bailee
Mutual benefits

Answer 36

Types of bailment

Question 37

Bailment benefits only property owner, Bailee must excercise “slight care”, liable only for gross negligence are examples of ___.
(Example asking friend to store your piano)

Answer 37

Sole benefit of BAILOR

Question 38

Occurs when borrowing someone’s property, Bailee must exercise “great care” is ____.

Answer 38

Sole benefit of BAILEE

Question 39

Bailee renders a service and charges for the service. Bailee must exercise “reasonable care under the circumstances” is ____.

Answer 39

Mutual benefit

Question 40

Transports under special arrangements for a fee are ____.

Moving vans
Delivery services
Funeral home A transports a body to Funeral Home B

Answer 40

Private Carrier

Question 41

One that undertakes to transport without discrimination for all who apply for service are ____.

Airlines
Trains
Busses

Answer 41

Common carriers

Question 42

One who ships goods by a common carriers is a ____.

Answer 42

Consignor

Question 43

One to whom goods are shipped to by a common carrier is the ____.

Answer 43

Consignee

Question 44

____ is the receipt and contract existing between the consignor and the carriers, it is the documentary evidence of title of goods.

Answer 44

Bill of lading

Question 45

Instrument in writing describing the freight for identification; signed by the carrier; states the name of the consignor; the terms of the contract for carriage; directing location of delivery are the ____ of the bill of lading.

Answer 45

Elements

Question 46

Similar to cashier’s check, a ____requires signature and counter signature by purchaser.

Answer 46

Traveler’s check

Question 47

The holder must take the instrument in good faith and for face value; must have no notice that instrument is overdue or has been dishonored; at time of negotiation, no notice of any defense against or adverse claim to the instrument is a ____.

Answer 47

Holder in due course