Multiple Choice Q's

Question 1

Under Article 3 of the UCC, what is the statute of limitations for actions on notes payable at a definite time or on demand?

Answer 1

six years

Question 2

An instrument, to be negotiable, must be payable to?

Answer 2

to order or bearer

Question 3

What kinds of negotiable instruments does Article 3 of UCC apply to?

Answer 3

notes and drafts

Question 4

True or false, under article 3, a check is a specific type of note

Answer 4

false, it’s a type of draft drawn on a bank and payable on demand

Question 5

All of the following defenses may be raised against a Holder in due course except

Answer 5

infancy can, illegality can, duress can, but lack of consideration can’t

Question 6

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

Discharge in insolvency proceedings is a defense that can/cannot be brought against HDC

Answer 7

can

Question 8

what type of fraud is assertable against a holder in due course?

Answer 8

real fraud