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Summary BLAW 3310 - Exam 3 Review Test Bank, Complete solution guide : Latest Guide; University of Texas, Arlington.
- Course
- BLAW 3310 (BLAW3310)
- Institution
- University Of Texas - Arlington
BLAW 3310 - Exam 3 Review; A Work.
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By: jacquelynfarah • 1 year ago
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Chapter 12Negotiable Instruments, Credit, and Bankruptcy
1. Every year, creditors have to absorb ______________ in unpaid debt:
a. about $100 million
b. about $5 billion
c. over $20 billion
d. less than $5 million
e. about $20 million
ANSWER: c (page 331)
National: AACSB Analytic; AICPA BB-Legal
2. Every year, creditors have to absorb ______________ in unpaid debt:
a. about $10 million
b. about $1 billion
c. about $20 million
d. about $50 million
e. none of the other choices are correct
ANSWER: e (page 331)
National: AACSB Analytic; AICPA BB-Legal
3. The law of negotiable instruments has it origins in:
a. France
b. Rome
c. England
d. Spain
e. Ancient Greece
ANSWER: c (page 332)
National: AACSB Analytic; AICPA BB-Legal
4. The law of negotiable instruments has its origins in:
a. France
b. Rome
c. Kenya
d. Spain
e. none of the other choices are correct
,ANSWER: e (page 332)
National: AACSB Analytic; AICPA BB-Legal
5. Before passage of laws affecting negotiable instruments:
a. the right to payment was a contract right that could not be sold
b. business was done on a cash basis only
c. businesses were required to maintain large cash reserves (or cash equivalents, such
as land or other property) as a guarantee of future payment for credit sales
d. it was possible to buy products internationally only by opening a letter of credit as
a guarantee of payment
e. credit cards were the most common exchange form used
ANSWER: a (page 332)
National: AACSB Analytic; AICPA BB-Legal
6. Negotiable instruments:
a. substitute for cash
b. are generally also gold certificates
c. make business deals more difficult
d. are part of federal regulatory controls
e. none of the other choices
ANSWER: a (page 332)
National: AACSB Analytic; Communication; AICPA BB-Legal
7. Negotiable instruments function as:
a. substitutes for cash
b. credit devices
c. devices for making business deals easier
d. are subject to Article 3 of the UCC
e. all of the other choices
ANSWER: e (page 332)
National: AACSB Analytic; Communication; AICPA BB-Legal
8. Negotiable instruments are not:
a. substitutes for cash
b. credit devices
c. devices for making business deals easier
d. generally subject to Article 3 of the UCC
e. none of the other choices
,ANSWER: e (page 282)
National: AACSB Analytic; Communication; AICPA BB-Legal
9. Negotiable instruments are not:
a. substitutes for cash
b. credit devices
c. subject to Article 2 of the UCC
d. devices for making business deals easier
e. all of the other choices
ANSWER: c (page 332)
National: AACSB Analytic; Communication; AICPA BB-Legal
10. Negotiable instruments are a part of the commercial law through:
a. Article 2 of the UCC
b. Article 3 of the UCC
c. Article 3 of the CISG
d. Article 3 of the Constitution
e. Article 3 of the Universal Trade Code
ANSWER: b (page 332)
National: AACSB Analytic; AICPA BB-Legal
11. Negotiable instruments are a part of the commercial law through:
a. Article 2 of the UCC
b. Article 3 of the Universal Trade Code
c. Article 3 of the CISG
d. Article 3 of the Constitution
e. none of the other choices are correct
ANSWER: e (page 332)
National: AACSB Analytic; AICPA BB-Legal
12. A(n) ______________ functions as a substitute for cash.
a. parley
b. easement
c. negotiable instrument
d. notable instrument
e. credit instrument
ANSWER: c (page 332)
, National: AACSB Analytic; Communication; AICPA BB-Legal
13. A(n) ______________ functions as a substitute for cash.
a. parley
b. easement
c. debtor instrument
d. notable instrument
e. none of the other choices are correct
ANSWER: e (page 332)
National: AACSB Analytic; AICPA BB-Legal
14. A(n) _____________ is a note promising to repay borrowed money, probably with
interest.
a. negotiable instrument
b. negotiable note
c. promissory note
d. lending note
e. borrowing note
ANSWER: c (page 332)
National: AACSB Analytic; Communication; AICPA BB-Legal
15. A(n) _____________ is a note promising to repay borrowed money, probably with
interest.
a. negotiable instrument
b. negotiable note
c. borrowing note
d. lending note
e. none of the other choices are correct
ANSWER: e (page 332)
National: AACSB Analytic; AICPA BB-Legal
16. A financial institution that receives a promissory note has the right to:
a. sell the note to another party
b. demand the U.S. Treasury redeem the note
c. change the interest terms of the note
d. demand repayment of the loan before the originally agreed upon time
e. none of the other choices are correct
ANSWER: a (page 332)
, National: AACSB Analytic; AICPA BB-Legal
17. If a negotiable instrument is __________, the assignee has the same contract rights
and responsibilities as the assign-or.
a. assigned
b. delegated
c. returned
d. negated
e. realigned
ANSWER: a (page 332)
National: AACSB Analytic; Communication; AICPA BB-Legal
18. If a negotiable instrument is ____________, the transferee takes the instrument free
of any of the transferor’s contract obligations.
a. transferred by assignment
b. transferred by negotiation
c. transferred by court
d. assigned
e. delegated
ANSWER: b (page 332)
National: AACSB Analytic; Communication; AICPA BB-Legal
19. If a negotiable instrument is ____________, the transferee takes the instrument free
of any of the transferor’s contract obligations.
a. transferred by assignment
b. delegated
c. transferred by court
d. assigned
e. none of the other choices are correct
ANSWER: e (page 332)
National: AACSB Analytic; AICPA BB-Legal
20. If an instrument is made __________, the party in possession is required only to
deliver the instrument to transfer it.
a. “to transferee”
b. “to holder”
c. “to possessor”
d. “to bearer”
e. “to recipient”
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