Question 1

Presentment warranties are made by any prior transferor of the instrument at the time the person transfers the instrument.

Accepted Answer

A) True 
 B)False

Question 2

Salmond signs a note for the purpose of lending credit to John.Salmond also makes his father Richard sign the note because of his shaky financial condition.This indicates that Richard has signed the note in the capacity of a(n) :

Accepted Answer

A)   drawer.
B)   accommodation party.
C)   drawee.
D)   indorser.

Question 3

According to UCC section 3-401 which of the following does NOT constitute a valid signature of a negotiable instrument?

Accepted Answer

A)   A mark on the document
B)   A word on the document
C)   Leaving the document intentionally blank
D)   Printing the name on the document

Question 4

Signing a promissory note is an example of establishing primary liability in a negotiable instrument.

Accepted Answer

A) True 
 B)False

Question 5

A transferor of a negotiable instrument for consideration warrants to his transferee that the negotiable instrument has not been altered.

Accepted Answer

A) True 
 B)False

Question 6

The drawee does not have liability on the instrument until it _____ the instrument.

Accepted Answer

A)   transfers
B)   signs
C)   negotiates
D)   makes

Question 7

A transfers a negotiable note to B,who in turn transfers it to C.Under what conditions has A made a transfer warranty to C?
The transfer must be for consideration.And if the transferor indorses,he makes the transfer warranties to all subsequent transferees.

Accepted Answer

The transfer must be for consi...

Question 8

UCC section 3-604 allows for the liability associated with a negotiable instrument to be canceled by the person entitled to enforce the instrument.

Accepted Answer

A) True 
 B)False

Question 9

All signatures on a negotiable instrument are guaranteed to be treated as authentic due to what type of warranty?

Accepted Answer

A)   Transfer warranty
B)   International commerce warranty
C)   Principal agent warranty
D)   Invoice protection warranty

Question 10

If Jay signs Mila's name to a negotiable instrument without Mila's authorization or approval:

Accepted Answer

A)   the signature is not effective as the signature is of the unauthorized signer.
B)   the signature cannot be ratified later by the person represented.
C)   the signature does not bind the person whose name appears.
D)   Jay is not liable on the check.

Exam 33: Liability of Parties

Salmond signs a note for the purpose of lending credit to John.Salmond also makes his father Richard sign the note because of his shaky financial condition.This indicates that Richard has signed the note in the capacity of a(n) :

Correct Answer
verified

According to UCC section 3-401 which of the following does NOT constitute a valid signature of a negotiable instrument?

Correct Answer
verified

Presentment warranties are made by any prior transferor of the instrument at the time the person transfers the instrument.

Correct Answer
verified

The drawee does not have liability on the instrument until it _____ the instrument.

Correct Answer
verified

UCC section 3-604 allows for the liability associated with a negotiable instrument to be canceled by the person entitled to enforce the instrument.

Correct Answer
verified

A transfers a negotiable note to B,who in turn transfers it to C.Under what conditions has A made a transfer warranty to C? The transfer must be for consideration.And if the transferor indorses,he makes the transfer warranties to all subsequent transferees.

Correct Answer
verified
The transfer must be for consi...
View Answer

All signatures on a negotiable instrument are guaranteed to be treated as authentic due to what type of warranty?

Correct Answer
verified

Signing a promissory note is an example of establishing primary liability in a negotiable instrument.

Correct Answer
verified

If Jay signs Mila's name to a negotiable instrument without Mila's authorization or approval:

Correct Answer
verified

A transferor of a negotiable instrument for consideration warrants to his transferee that the negotiable instrument has not been altered.

Correct Answer
verified

Exam 33: Liability of Parties

Salmond signs a note for the purpose of lending credit to John.Salmond also makes his father Richard sign the note because of his shaky financial condition.This indicates that Richard has signed the note in the capacity of a(n) :

Correct AnswerverifiedShow Answer

According to UCC section 3-401 which of the following does NOT constitute a valid signature of a negotiable instrument?

Correct AnswerverifiedShow Answer

Presentment warranties are made by any prior transferor of the instrument at the time the person transfers the instrument.

Correct AnswerverifiedShow Answer

The drawee does not have liability on the instrument until it _____ the instrument.

Correct AnswerverifiedShow Answer

UCC section 3-604 allows for the liability associated with a negotiable instrument to be canceled by the person entitled to enforce the instrument.

Correct AnswerverifiedShow Answer

A transfers a negotiable note to B,who in turn transfers it to C.Under what conditions has A made a transfer warranty to C? The transfer must be for consideration.And if the transferor indorses,he makes the transfer warranties to all subsequent transferees.

Correct AnswerverifiedThe transfer must be for consi...View AnswerShow Answer

All signatures on a negotiable instrument are guaranteed to be treated as authentic due to what type of warranty?

Correct AnswerverifiedShow Answer

Signing a promissory note is an example of establishing primary liability in a negotiable instrument.

Correct AnswerverifiedShow Answer

If Jay signs Mila's name to a negotiable instrument without Mila's authorization or approval:

Correct AnswerverifiedShow Answer

A transferor of a negotiable instrument for consideration warrants to his transferee that the negotiable instrument has not been altered.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The transfer must be for consi...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified