Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

BLAW 4203 > Exam 1 UCC-3 > Flashcards

Exam 1 UCC-3 Flashcards

1
Q

what are the 5 real defenses

A
  1. bankruptcy
  2. forgery
  3. judicial insanity
  4. material altercation
  5. fraud in the execution
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
1
Q

what are the 5 personal defenses

A
  1. breach of contract
  2. failed consideration
  3. wrongful completion
  4. duplicate payment
  5. fraud in the inducement
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

being a holder in due course gets rid of what type of defenses

A

personal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Can the payee be a holder in due course

A

NEVER

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

why can the payee not be a holder in due course

A

they have constructive knowledge

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what are the five criteria for a negotiable contract

A
  1. unconditional promise to pay to the order or bearer
  2. payable on demand or at a specific time
    3.sum certain
  3. in writing (just somewhat portable)
  4. signed
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

is bearer on demand a negotiable instrument

A

yes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what is a bearer on demand

A

a note/ instrument that is payable to the person who is in possession of it at any time when the bearer requests payement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

a party is considered a holder in due course if they receive the negotiable instrument ….

A

in good faith; with value given in exchange for the NI; no notice of issues with the instruments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

who is liable for forgery if it happens on the back of a check

A

the depository bank

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

who is responsible if forgery happens on the front of the check

A

drawee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

who is the drawer

A

the maker of the NI who signs a draft

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

three party instrument

A

draft

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

who is the drawee

A

the person (usually bank) that’s being directed to pay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

who are the three parties in a draft

A

drawee, drawer, payee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

two party instrument

A

Note

16
Q

what are the two parties in a note

A

payee, maker

17
Q

what kind of negotiable instrument is a cashier’s check

A

draft

18
Q

what is a cashier’s check

A

when the bank is drawing on itself

19
Q

can you stop payment on a cashier’s check

A

no

20
Q

what is the closest to cash that you can get

A

cashier’s check

21
Q

what is a ceritified check

A

a draft “certified” by the bank

22
Q

what is a CD

A

note where the bank is the debtor

23
Q

what are three special items

A

CD, cashier’s check, certified check

24
Q

why are special items better than a check

A

a check can go NSF

25
Q

is a stale check (older than 6 months) still negotiable?

A

yes

26
Q

what is the 30 day rule

A

you get 30 days from fraud occurring to tell the bank

27
Q

who is a payee

A

person identified to get paid

28
Q

draft

A

an order by a drawer directing the drawee to pay the payee

29
Q

checks

A

a draft drawn on a bank

30
Q

what is a note

A

a promise by one party to pay money to another party or bearer

31
Q

what is the certificate of deposit

A

a note made by bank, where the bank is the maker of the note

32
Q

maker

A

person in a note who promises to pay

33
Q

what is the order from cash on down in power against defenses

A

CASH > NI & HIDC > NI > NON-NI > VERBAL PROMISE

34
Q

five types of endorsements

A
  1. blank
  2. for deposit only
  3. special
  4. qualified
  5. combination
35
Q

what is a blank endorsement

A

an instrument payable to order and endorse in “blank” becomes a bearer instrument and can be negotiated by delivery alone

36
Q

five transfer warranties

A
  1. the transferor is entitled to get paid
  2. no material altercations
  3. all signatures are authentic
  4. no knowledge that the maker or drawer is insolvent at that time
  5. no fraud associated with transaction
37
Q

all parties are ________________- except for the maker and co-maker

A

secondary liable

BLAW 4203 (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions