REG - 10 Flashcards
According to SSTS No. 2, when is omission of an answer permitted?
Only if:
(a) the information is not readily available AND
(b) the answer is not significant in terms of taxable income or loss
Is a trustee who prepares a tax return for his/her trust considered a TRP?
no
Which of the following requires consideration to be binding on the parties?
A. Material modification of a contract involving the sale of real estate.
B. Ratification of a contract by a person after reaching the age of majority.
C. A written promise signed by a merchant to keep an offer to sell goods open for 10 days.
D. Material modification of a sale of goods contract under the UCC.
A. Material modification of a contract involving the sale of real estate.
A real estate contract cannot be modified unless additional or new consideration is given. Only UCC contracts for the sale of goods can be modified without new consideration.
Does a C.O.D. (cash on delivery) contract permit inspection before payment is made?
No
If the goods turn out to be nonconforming, they may later be rejected by the buyer.
What elements are required to be a holder in due course?
- the holder must take the instrument for value
- take the instrument in good faith
- take the instrument without notice the instrument is overdue or has been previously dishonored or of any claim or defense
Order Paper
An instrument payable to a specific person.
Restrictive Indorsement
Any endorsement that purports to condition, limit, or prohibit further negotiation of the instrument
Special Indoresement
requires that the signature be preceded by “Pay to _______” or “Pay to the order of _________.”
Qualified Indorsement
Includes the words “Without recourse” and has only the payee’s name
What effect does signing your name on a check have?
Turns order paper into bearer paper and can be transferred by anyone at any time by delivery only without restrictions and without limitations on liability
