When an instrument is negociable?

Question 1

When an instrument is negotiable?

Answer 1

An instrument is negotiable when:
1- be in writing
2- be signed by the maker or drawer
3- Contain an unconditional promise or order to pay
4- state affixed sum of money
5- be payable on demand or at a definite time
6- be payable to order or to bearer unless it is a check

Question 2

In order to negotiate order paper, one must?

Answer 2

need to be endorse and deliver

Question 3

In order to negotiate bearer paper, one must?

Answer 3

Negotiate by deliver the instrument only

Question 4

What is a restricted endorsement?

Answer 4

RE contain for “deposit only”

Question 5

What is a blank endorsement?

Answer 5

Is one that does not specify any endorsee

Question 6

What is a qualified endorsement?

Answer 6

is the one in which the endorser disclaims liability to pay the holder “without recourse”

Question 7

What is a special endorsement?

Answer 7

When the endorser indicates a specific person who needs to subsequently endorse it.

Question 8

How to be a holder is due course?

Answer 8

1- Take without notice that the instrument is overdue
2- has been dishonored
3- Any person has a defense or claim to it.

Question 9

What is the warranty of title?

Answer 9

is when the seller warrants good title, rightful transfer and freedom from any security interest or lien of which the buyer has no knowledge at the time of sale

Question 10

What express or implied warranties include?

Answer 10

1- Express W is warranties that the goods will conform to any description used or nay sample or model shown
2- Implied W includes the w of fitness for a particular purpose and the W of merchantability.

Question 11

What is the implied warranty of merchantability?

Answer 11

is the W which guarantees that goods are fit for ordinary purposes, arises as a matter of law when the seller is a merchant who ordinarily sells the goods purchased.

Question 12

Can the implied warranty of merchantability be disclaimed?

Answer 12

Yes, IWM may be disclaimed (denial, refusal) by a seller’s oral or written statement. This statement normally must contain some form of the word “Merchantability” to be effective. Or, “As is” “with all faults” are an exception to that rule.

Question 13

What elements a plaintiff must establish under the theory of strict liability?

Answer 13

1- The seller was engaged in the business of selling the product.
2- The product was defective
3- The was unreasonably dangerous to the plaintiff
4- The defect caused injury to the plaintiff

Question 14

The common carrier’s liability is based on strict liability

Answer 14

Liable for losses to property whether or not the common carrier was negligent
Exceptions to strict liability include Natural disasters:
- Not liable for acts of God
- Not liable for acts of the shipper
- Not liable for acts a public enemy

Question 15

What are the seller remedies against the buyer upon a breach of contract?

Answer 15

1- Withhold delivery of the goods
2- Stop delivery of the carrier of the goods
3- Resell the goods
4- Recover compensatory or incidental damages
5- Cancel the contracts
6- Recover the goods from the buyer.

Question 16

What is an offer?

Answer 16

Express intent to enter into a contract
To be effective, the offer must be definite.
To be definite, an offer will includes:
- Price
- Subject matter
- Time for performance (quantity and type)
- Terms considered definite if reasonable person could determine that?
An offer may be revoked at any time until accepted.

Question 17

What time an offer may be revoked?

Answer 17

• At any time until accepted
• A promise to hold an offer open for a specified time is not binding unless supported by consideration.
• A revocation is effective when received by the offeree

Question 18

Is an advertisement an offer?

Answer 18

No, advertisements are merely invitations for interested parities to make an offer.

Question 19

When an offer automatically terminates?

Answer 19

Termites upon the occurrence of any of the following events:

• The death or insanity of either the offeror or offeree
• Bankruptcy or insolvency of either the oferor or offeree
• The destruction of the specific, identified subject matter.

Question 20

When acceptance is effective under the mailbox rule?

Answer 20

An acceptance is ordinarily effective when sent if transmitted by the means authorized by the offeror, or by the same means used to transmit the offer if no means was authorized.