1. Joe gives his car keys to the valet at Morton's. This is a(n): a. entitlement b. bailment c. gift causa Mortis d. gift inter vivos

2.

1. Homer died at age 85 and left all his property to Joe, his butler. The news of the new will that Homer executed three months before his death naming Joe as the sole beneficiary surprised everyone. By his prior will, Homer had bequeathed his estate to his three children, Bart, Lisa and Maggie. The court heard proceedings to determine the validity of the new will since Homer's rejection of his children was uncharacteristic of him. The court will most likely set aside the new will based on:

	a.	constructive trust
	b.	undue influence
	c.	undue hardship
	d.	spendthrift trust

3.

1. Felicia, an elderly woman, does not speak or read English very well. Felicia is a recent immigrant to this country. A dishonest immigration officer tells Felicia to sign several documents as being necessary to maintain her legal alien status. Unknown to Felicia, she signed a promissory note. The immigration officer thereafter sells the note to Neighborhood Bank, a holder in due course, who goes after Felicia for payment of the note. Felicia's defense to the Neighborhood Bank is:

fraud in the inducement - a real defense

fraud in the execution - a real defense

unauthorized completion - a personal defense

breach of contract - a real defense

4.

1. A 'holder' can be described as:

	a.	the payee
	b.	any person in possession of a negotiable instrument
	c.	the maker of the instrument
	d.	the first party to come into contact with a negotiable instrument

5.

1. A bank that lends money to a borrow so the borrower can buy a home is called a:

	a.	profitor
	b.	licensor
	c.	mortgagor
	d.	mortgagee