Commercial Paper

Question 1

Approach to Commercial Paper Problem
I2N2>HDC-A robot named I2N2 splashing water (H2O) at a Cobra (COA) or snake with Warts b/c it ate at Dunkin Donuts and did not read the label

Answer 1

Identify type of Instrument
Identify parties
determine if instrument is Negotiable
determine if instrument properly Negotiated
determine if transferee is Holder in Due Course
determine P’s COA Cause Of Action whether
Contract, Warranty, or Tort or not properly payable
determine D’s Defenses
If D liable, can liability be passed to another?

Question 2

2 Types of Negotiable Instruments

Answer 2

Promissory Note

Draft

Question 3

2 requirements for draft

FID POD

Answer 3

1) Financial Institution is Drawee

2) Payable On Demand

Question 4

What’s the Mnemonic for Negotiability Requirements

Answer 4

WOS FU MAD

Question 5

What does WOS FU MAD stand for?

Answer 5

Writing
payable to Order of bearer
Signed by maker or drawer
Fixed amount
Unconditional promise to pay
payable in Money
no Additional undertaking or instruction
payable on Demand or at a Definite time

Question 6

Equation of HDC

Answer 6

H=P+GT

Holder = Possession + Good Title

Question 7

Types of Indorsement

SIBIRI

Answer 7

Special Indorsement
Blank Indorsement
Restrictive Indorsement