GLOBE 3G 2:19 PM 95% Done 1 of 9 The exhibition of an instrument to the party primarily liable is known as A. Acceptance B. Presentment for payment C. Indorsement D. negotiation 2. An instrument payable to bearer is negotiated only thru A special indorsement plus delivery B. blank indorsement plus delivery long as there is indorsement C. mere delivery D. No delivery is required as Where the party primarily liable on the intrument is dead, the instrument shall be presented to his/her A. heirs B. secretary C. bank D. agent + Where a foreign bill of exchange is dishonored, the holder must send to the parties secondarily liable A collection letter B. notice of dishonor C. protest D. demand letter s. A person whose name is placed by the drawer of a bill to whom the holder may resort to incase the bill is dishonored by the drawee is A. agent trustee B. c. referee in case of need D. indorser 6. Where a Inland bill of exchange is dishonored by non-acceptance or non- payment, the holder is required to send to the parties secondarily liable A. protest B. demand letter c. letter-reminder D. notice of dishonor 1. A bill of exchange may be treated as a promissory note when A drawer and drawee are the same person B. drawee is a fictitious person c. drawee is a person not capacitated D. all of the above A bill drawn in one State/country and payable in another State/Country A. Inland bill of exchange B. foreign bill of exchange c. letter of credit D. Bank draft 9. A kind of acceptance where there is no other qualification other than payment GLOBE 3G 2:19 PM 95% Done 1 of 9 A kind of acceptance where there is no other qualification other than payment of the instrument is A. qualified. B. local c. general D. conditional 10. Not a method of transferring commercial papers A. assignment B. negotiation c. indorsement and delivery D. barter 11. Any alteration which changes the following shall be deemed to be material, except A date B. sum payable c. time and place of payment D. the number of relations of the parties E none of the above 12. A bill of exchange maybe treated as a promissory note A when drawee and payee are the same person B. when drawer and payee are the same person c. when drawer and drawee are the same person D. all of them 13. A person secondarily liable on the instrument is discharged except A by any act which discharged the instrument B. intentional cancellation of his signature by the holder c. discharge of a prior party D. by a valid tender of payment made by a prior party E none of the above 14. the sum payable is a sum certain, although it is to be paid A. with interest B. by stated installment c. at an exchange rate D. with cost of collection or attorney's fees E all of the above 15. In order to satisfy the requirements of a promissory note, it must be A payable to order or bearer B. signed by the maker c. must contain an unconditional promise to pay a sum certain in money D. payable on demand or at a fixed determinable future time E all of the above F. none of the above E none of the above 14. the sum payable is a sum certain, although it is to be paid A. with interest B. by stated installment c. at an exchange rate D. with cost of collection or attorney's fees E all of the above 15. In order to satisfy the requirements of a promissory note, it must be A. payable to order or bearer B. signed by the maker c. must contain an unconditional promise to pay a sum certain in money D. payable on demand or at a fixed determinable future time E all of the above F. none of the above Test II- Essay-5 points per item- total 30 pts. 1. Distinguish Protest from Notice of Dishonor. 2. Discuss briefly how acceptance of a bill is made. 3. What do you mean by payment supra protest? 4. How and when is protest made? 5. What is meant by notice of dishonor? How is it done? When is it made? 6. State the rules when notice of dishonor is given to a. partners and b. joint debtors. Test III- Practical exercises- 40 pts. 1. What is a Bill in a set? What is purpose of issuing a Bill in a set? If all the parts of the bill in a set is negotiated, is the drawer liable on all parts? discuss. 2. Illustrate a bill in a set with 4 parts. ABCB