Commercial Paper

Question 1

Under Article 3 of the Uniform Commercial Code, as adopted by Virginia, what is the statute of limitations for actions on notes payable at a definite time or on demand?

Answer 1

Six years

Question 2

Under Article 3 of the Uniform Commercial Code, as adopted by Virginia, an instrument, to be negotiable, must be payable to which of the following?

Answer 2

To order or bearer

Question 3

What are the kinds of negotiable instruments to which Article 3 of the Uniform Commer-cial Code, as adopted by Virginia, applies?

Answer 3

Notes and drafts

Question 4

TRUE or FALSE: Under Article 3 of the Uniform Commercial Code, as adopted by Virginia, a check is a specific type of note.

Answer 4

False

Question 5

Under Article 3 of the Uniform Commercial Code, as adopted by Virginia, all of the following defenses may be raised against a holder in due course except:

Answer 5

Lack of consideration

Question 6

Under Article 3 of the Uniform Commercial Code, as adopted by Virginia, if no demand for payment is made on the maker of a note payable on demand or at a definite time, an action to enforce the note is barred if no interest or principal has been paid on the note for how many years?

Answer 6

Ten years

Question 7

Under Article 3 of the Uniform Commercial Code, as adopted by Virginia, which of the following defenses may be raised against a holder in due course?

Answer 7

Discharge in insolvency proceedings

Question 8

Under the Uniform Commercial Code, as adopted by Virginia, which type of fraud is assertable against a holder in due course?

Answer 8

Real fraud