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Emil Amberboy invested in oil and gas through Vanguard Group International, Inc. He made a down payment in cash and signed a promissory note payable

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Emil Amberboy invested in oil and gas through Vanguard Group International, Inc. He made a down payment in cash and signed a promissory note payable to the Group. The note stated that the interest rate was to be determined by the prime rate. Several months later, Vanguard sold the notes to Socit de Banque Prive. Suspecting that the investments were being handled fraudulently, Amberboy stopped making payments on the notes and filed a lawsuit against Socit de Banque Prive for breach of contract. Amberboy claimed that because the interest rate on the notes could be calculated only by referring to a source outside the notes, the notes could not be negotiable instruments. The Banque claimed that it had purchased negotiable instruments and that it was entitled to be paid on them. The court most likely held that the notes: a.stated a fixed amount of money, because the interest rate is never calculated into the amount of a note. b. did not state a fixed amount of money, because it is too difficult to determine the amount the notes were worth c. did not state a fixed amount of money, because the sum was not clearly spelled out in the note. O d. stated a fixed amount of money, because the prime rate is published and can be easily ascertained. Serena owes Roger $50, so she writes him a check for that amount "pay to the order of cash." Serena can officially transfer this instrument to Roger by: a. including the words "without recourse" on the instrument. b. indorsing it with her name on the back. c. handing it to him. d. indorsing it with her name and Roger's name. Hide Feedback Incorrect Kellan writes a note promising to pay LuAnn the $1.000 he borrowed from her "as soon as I can." One year later, Kellan wins the lottery. LuAnn comes to Kellan demanding that he repay her $1,000. Kellan: a. must pay, because LuAnn has demanded payment. O b. must pay interest to LuAnn because so much time has passed. 1 c. need not pay, because the instrument is nonnegotiable. d. must pay, because his lottery win has obviously rendered him able to do so. Kellan writes a note promising to pay LuAnn the $1.000 he borrowed from her "as soon as I can." One year later, Kellan wins the lottery. LuAnn comes to Kellan demanding that he repay her $1,000. Kellan: a. must pay, because LuAnn has demanded payment. O b. must pay interest to LuAnn because so much time has passed. 1 c. need not pay, because the instrument is nonnegotiable. d. must pay, because his lottery win has obviously rendered him able to do so

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