Test 3 Flashcards
This Article identifies the 4 kinds of Negotiable instruments governed by the UCC
Article 3
The 4 kinds of Negotiable instruments governed by the UCC
Drafts, Checks, Notes, and CDs
The three functions of Negotiable instruments
Substitute for Money
Credit Device
For Record Keeping Purposes
The person who sign/issues or makes the order to pay
Drawer
The person to whom the order to pay is made; The person who is holding the money; The bank
Drawee
The person to whom payment is ordered; The person who is getting the money
Payee
Requirements for Negotiable Instruments: Must be on material such that writing must be:
Permanent and Portable
Unconditional promise vs. Conditional promise
Unconditional promise is simply an express promise or order. Conditional promise requires a condition to be made.
An indorsement where you simply sign your name
Blank Indorsement
An indorsement that is indorse to a specific person(s); Ex.) “Pay to Leroy”
Special Indorsement
An indorsement without recourse; “Pay to Leroy Without Recourse”
Qualified Indorsement
An indorsement that is for deposit only; “For Deposit Only”
Restrictive Indorsement
A holder who takes a negotiable instrument by giving value and taking in good faith and without having notice that “anything is wrong with the instrument
Holder in Due Courses
The bank agrees in advance to accept these check when it is presented and to pay with money set aside from the customer’s account.
Certified checks
Who makes the request for certified checks?
The Bank’s customers
Someone pays the bank to issue these checks. The bank has no relationship with the person requesting this type of check.
Cashier’s check
Checks that have been outstanding for more than 6 months: the bank can or cannot pay it
Stale checks
The amount of a check over the amount of the money that the depositor has in his account
Overdraft
Characteristics of a Sovereign Nation
- It is independent of other nations
- It has an effective government
- It has a permanent population
- It has an identifiable economy
- It has a defined territory
- It engages in foreign relations
- It is recognized by other sovereign states
Rights of Sovereign Nations
- able to act independently of each other
- are equal to other sovereign nations
- are allowed the management of their own internal affairs
- not subject to the compulsory jurisdiction of international law without consent
The most binding form of international agreement that exists
Treaties
The judicial branch of the United Nations; Also known as World Court.
International Court of Justice
Is there a single world legislative to enact international laws
NO
Is there a single executive power to enforce international laws
NO
Is there a single judiciary power to resolve international disputes
NO
The concept of respect for each nation’s actions
Comity
The General Agreement on Trade in Services
GATS
The basic concepts of GATT is to
Liberalize world trade by:
- Tariff bargaining
- Quantitative restrictive
- Settlement of disputes
Most important point of the GATT
To achieve the fullest non-discrimination of trade practices possible
Kind of tariff that are assessed according to the value of the goods being imported
Ad valorem
Kind of tariff that are assessed according to the number of the goods being imported
Spcific
Kind of tariff that are assessed according to both the value and the number of goods being imported
Mixed
any thing besides a tax that raises the barriers for goods to be imported; Quotas, Enbargoes, marketing regulations, etc.
Non-tariff trade barriers
numeric limits as to the number of goods a country will allow to be imported in
Quotas
Phohibitions of transfer of goods or services to or from a country
Embargoes
The four Freedoms of the EU
The freedom of movement of people, goods, services, and capital
For a court’s jurisdiction to be valid over a foreign defendant, there must be…
a connection between country and the alleged defendent
Law that is based in English history
Common Law
Law that is based in the civil code, originating in Persia centuries ago
Civil Law
reflects the privilages granted by vitue of the individual’s membership in the political community
Citizenship
related to one’s birthplace: privilages are acheived by birth in the political community.
Nationality
the process by which a person becomes a citizen
Naturalization
the international equivalent of the UCC
The Convention for Contracts for the International Sales of Goods (CISG)
clause that relate to who will bear the risk of loss if the shipment is destroyed
Risk of Loss Clause
clause that relate to the law that will be used in the event that a dispute arises
Choice of Law clause
clause that relates to the geographic location/court that will be used in the event that a dispute arises
Choice of forum
clause that relate to the language that will be used in the event a dispute arises
Choice of language
property that was voluntarily placed and then forgotten. Ownership does not change
Mislaid property
property that was involuntarily placed and left. Ownership does not change
Lost property
property that was left purposely. Ownership changes
Abandoned property
4 majors classifications of real property
- Land
- Airspace (planes, zoning)
- Materials below the surface (Minerals, Water, Oil)
- Crops and timber
each owner owns an undivided interest in the property and when one owner dies, his share goes to his heirs
Tenancy in common
each owner owns an undivide interest in the property and when one owner dies, his share goes to the other owner(s)
Joint tenancy with right of survivorship
Tenancy that endsat the end of lease without notice; fixed term tendency
Tendency for years
tendency that is automatically renewed at the end of the lease period; a periodic tenancy
Tenancy from period to period
tendency without a lease. It can be ended without notice of either party
Tendency at will
Possession of land without rights
Tendency by sufferance
The government wants and takes your property, compensation is required
Eminent domain
The government does not want yet takes your property. Compensation is not required
Condemnation or confiscation
The law establishing the relationship and circumscribing the behaviors between the principal and agent
Agency law
This relationship forms when an employer hires an employee and gives him authority to act and enter into contracts on his behalf
Principal/Agent Relationship
This relationship forms when an employer hires an employee to perform tasks or services but the employee has not been authorized to act and enter into contracts on his behalf
Employer/Employee Relationship
This relationship forms when the principal hires an independent contractor who is not an employee
Principal/Independent contractor
duties of trust and confidence due by one party to another
fiduciary
express agreement with specific instructions in words, orally or in writing, between the principal and agent
Expressed agreement
implied by the cirucumstances; there is not express creation of the relationship
Implied agreement
a formal express agency agreement often used to give an agent the power to sign legal documents on behalf of the principal
Power of attorney
occurs when the agent had no authorization or when the agent “crossed the line”
Agency by ratification
occurs when a principal leads third person to believe another person is his agent when he is not
Agency by estoppel
Duty where the principal pay the agreed upon amount to the agent due to completion of duties
Duty of compensation
Duty where the principal pays for the agents expenses
Duty of reimbursement
Duty where the principal pays for the agent damages that occured on the principal behalf
Duty of imdemnification
