39. A negotiable bill of lading is duly negotiated ever

though

A. The negotiation is not in the ordinary course of business.

B. it is received by the transferee in payment of a money obligation.

C.It is not negotiable upon issuance, but is subsequently indorsed in blank and trans-ferred.

D.It is initially payable to the order of a named person, who signs in blank and delivers it to the transferse.

40. While auditing the common stock ledger of Sims Corporation a CPA uncovers the following situation.

An investor has purchased a certificate representing 500 shares of common stock of the Sims Corporation from a former clerk of the corporation. It was the duty of the clerk to prepare stock certificates from a supply of blanks for signature of the corporate secretary. The clerk forged the corporate secretary's signature on a bearer certificate and delivered the certificate for value to the investor who did not have notice of the forgery and who now demands a reissued certificate in the investor's name from the corporation. The corporation asserts that it has no liability to reissue a certificate in the name of the investor and that the investor's bearer certificate is null and void. Which of the follow. ing is correct?

A.The certificate is valid and the investor is entitled to a reissued certificate.

B.The certificate issued is invalid and the corporation has no liability to reissue.

C- An appropriate recourse of the investor is to sue the corporation and clerk for dollar damages and to sue the clerk for the crime of lorgery

D. the corporation is reauired to reissue a cerficate onky if appropriatley compenstaed by the investor.

42. The Uniform Commercial Code deals differently with negotiable documents of title than with com. mercial paper. Which of the following will prevent a due negotiation of a negotiable document of title?

A. The transfer by delivery alone of a title document which has been endorsed in blank.

b. The receipt of the instrument in payment of an antecedent money obligation.

C. The taking of a bearer document of title from one who lacks title thereto.

D. The fact that the document of title is more than one month old.

43. Under the Uniform Commercial Code's rule, a warehouseman a. Is liable as an insurer.

b. WIl! not be llable for the nonreceipt or misdescription of the goods stored even to a good faith purchaser for value of a warehouse receipt.

C.Can not limit its liability in respect to loss or damage to goods while in its possession.

d. Is liable for darnages which could have been avoided through the exercise of due care.

44. A negotiable bill of lading

A. Is one type of commercial paper as defined by the Uniform Commercial Code.

b. Can give certain good faith purchasers greater rights to the bill of lading or the goods than the transferor had

C. Can not result in a loss to the owner if lost or stolen, provided prompt notice is given to the carrier in possession of the goods.

D.Does not give the rightful possessor the ownership of thr goods

answer all questions