Question Details

[answered] BUS LAW 2211 INTERNET CHAPTER 23 30 Points 1. A holder of a

BUS LAW 2211 INTERNET????????????????????????????????????????????????????????????????????? CHAPTER 23?? 30 Points

1. A holder of a negotiable instrument is:

A) anyone who has possession of an instrument

B) anyone who is rightfully in possession of an instrument

C) anyone who is in possession of a bearer instrument or anyone who is in possession of an instrument payable to that person

D) none of the above

2. Stanley, who owes Milton money, indorses a check to him with the term "without recourse." The instrument later is dishonored. What liability does Stanley have on the instrument?

???????? a.? He has no liabilities on the instrument.

???????? b.?? He has to pay Milton in case the instrument defaults.

???????? c.?? He has primary liabilities.

???????? d.? none of the above

3. Chris convinces Dion, who does not read English to sign a$1,000 promissory note made out to Chris. He tells Dion it is an application for a credit card for Dion.? Chris negotiates the note to Tom. Dion:

????????????? a. Can avoid payment on the note even if Tom is a holder in due course

???????? ?????b. Can avoid payment on the note unless Tom is a holder in due course

????????????? c. Must pay the note in full

????????????? d. None of the above

???????? 4. Bill?? pays for a snow blower at Ace Hardware with a check. Ace deposits the check into its account at PNC but then Ace fails to send the correct snow blower to Bob. PNC can be a holder in due course if it proves:

????????????? a. it accepted the check in good faith

????????????????? b. the check was given as value for the snow blower

????????????????? d. it did not notice any defect on the check

????????????????? d. all of the above

5. Julian receives a promissory note from his grandmother as a birthday present. Is Julian a holder in due course (HDC) with respect to the note?

????????????????? a. No, because the note was a gift.??????????????

????????????????? b. No, because the note was signed by a relative.

????????????????? c. Yes, because the note was a gift made in good faith.???????

????????????????? d. Yes, because although the note was a gift, Julian took it without notice.

6. Dan?s checkbook was stolen by thief. Thief forged Dan?s signature on a check and issued it to Penny, who was unaware of the forgery. Penny presented the check to First Bank, the drawee bank. First Bank paid the check and charged Dan?s account for the amount of the check. In this case:

????????????? a.? First Bank is entitled to charge Dan?s account and does not have to recredit his account

b. First Bank must recredit Dan?s account

c. First Bank must recredit Dan?s account unless he is a minor

d. None of the above

7. Don, who owed Dan $1,000 for his share of the cost of a fishing trip they took together 2 years ago, transferred to Dan a check for $700 that he had just received from a customer. Has Dan given value for holder in due course purposes?

A) Yes, because accepting an instrument in payment of a prior debt is considered to be value given for holder in due course purposes.

B) Yes, but only if Dan still intends to collect the remaining $300 from Don.

C) No, because the check was less than the amount of the debt.

d. none of the above

8. Northup made of a negotiable promissory note that was payable to the order of Port. This promissory note was meant to purchase some furniture that Port used to own, but he lied to Northup when he claimed he still owned it. Port immediately negotiated the note to Johnson who knew about Port's lie.. When Johnson sought to enforce the promissory note against Northup, she refused. She said John is not a holder and due course and she did not have to pay him.. Which of the following is correct?

a. Johnson, as a holder in due course, can enforce the promissory note.
b. Northup wins because Johnson does not have the rights of a holder in due course.
c. Northup wins because she has a real defense on this note.

d. none of the above

9. Jennifer signs a promissory note to pay $2,500 to Clara. Clara negotiates the instrument and indorses it to Anthony. Anthony alters the note to make the payment amount $25,000 and negotiates the note to Nicholas. If Nicholas presents the note to Jennifer for payment, how much, if anything is Jennifer obligated to pay?

?????? a. $25,000

?????? b. $22,500

?????? c. $2,500

?????? d.? none of the above


Solution details:

This question was answered on: Sep 18, 2020

PRICE: $15 (25.37 KB)

Buy this answer for only: $15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .

About this Question






Sep 18, 2020





We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.


Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.


Order Now