SU #19.1

Question 1

UCC Article 3 Covers

Answer 1

Negotiable Instruments

Question 2

Negotiable Instruments Include:

Answer 2

Are written contracts and a form of property which include

1. Notes
2. CD’s
3. Drafts
4. Checks

Question 3

Order Paper

Answer 3

1. Promissory Notes
2. Drafts
3. Checks

Question 4

Trade Acceptance

Answer 4

is a time draft used by sellers as a means to extend credit to buyers of their goods

Question 5

Checks

Answer 5

Is a draft drawn on a bank which is always a sight draft

Question 6

Postdated Check

Answer 6

is payable on or after the indicated date

Question 7

Drawee

Answer 7

is the person who signs the check and is ordered to make payment

Question 8

Elements of Negotiability

Answer 8

1. be written and signed by the maker or drawer
2. Contains an unconditional promise or order to payable fixed amount of money
3. Be payable to order or bearer
4. Be payable on demand or at a definite time
5. Not state any other undertaking or instruction

Question 9

Bearer Paper

Answer 9

1. Pay bearer
2. Pay to the order of bearer
3. Pay to the order of P. Cruz or bearer
4. Pay any person presenting
5. Pay $500

Question 10

Order instrument is payable to

Answer 10

1. The order of an identified person (payable to the order of P Cruz)
2. An identified person or order (pay to P Cruz or order)
3. Payable to P Cruz
4. Payable to P Cruz only

Question 11

Endorsements is a

Answer 11

1. signature that negotiates the instrument
2. Restricts payment
3. incurs endorser’s liability