Sign Name Note: You must retum this question sheet along with the Scantron answer sheetl! Choose the BEST ANSWER. GOOD LUCKI 1. Tammy, an ordinary consurmer, bought a refigerator for her personal use fom Appliance Store and signed a negotiable note for 6 % of the purchase pri e Appliance 9tore property negotiated the note to the State Bank State Bark- nonetheless be subject to all the personal defenses which Tammy could assert against Appliance Store because of he ule. a FTC (Federal Trade Commission) c shelter b. se connectedness 2Ann hired Tom Green&Sons to paint her house. When the work was completed, an older man came to her door, The man was an identified himself as Tom Green, and had Ann make out a check to him for the cost of the job. imposter who indorsed the check Tom Green" and cashed it at Local Store. Drawee Bank honored the check Who bears the loss on this check c. Drawee Bank b. Local Store d. Local Store and Drawee Bank 3. If the primary party refuses to pay ar accept an instrument after presentment the instrument is_ a void b. dishonored d. canceed c invelid 4. An instrument states, "I promise to pay $100 to the order of Acme Co. for the sale of 10 red widgets. a. This instrument is not negotiable, because there is an express condtion. b. This last instrument is not negotiable, because there is an implied condition G. This instrument is payable from a particuler fund. d. This instrument could be negotlable. 5. Warranty Liability a. isnot subject to the conditions of presentment, dishonor and notice of dishonor b. may be lo addition to contractual iability. c occurs only when an instrument is indorsed. d both a and b. The certification of a cheak by the holder. a discharges the drawer b. discharges those indorsers prior to certification. c. commits the bank to honor the check when t is presented for payment d all of the above. 6. Order paper is negotiated by a. transfer of possession alone. c indorsement and transfer of possession. b. assinment alone d. an allonge. 7. Which of the following is a real defense to commercial paper? a. discharge in insolvency proceedings c. peyment b. lack of consideration d. none of the above 8. Val properly indorsed a check for $100 to Mary. In become the holder in due course? Sign Name Note: You must retum this question sheet along with the Scantron answer sheetl! Choose the BEST ANSWER. GOOD LUCKI 1. Tammy, an ordinary consurmer, bought a refigerator for her personal use fom Appliance Store and signed a negotiable note for 6 % of the purchase pri e Appliance 9tore property negotiated the note to the State Bank State Bark- nonetheless be subject to all the personal defenses which Tammy could assert against Appliance Store because of he ule. a FTC (Federal Trade Commission) c shelter b. se connectedness 2Ann hired Tom Green&Sons to paint her house. When the work was completed, an older man came to her door, The man was an identified himself as Tom Green, and had Ann make out a check to him for the cost of the job. imposter who indorsed the check Tom Green" and cashed it at Local Store. Drawee Bank honored the check Who bears the loss on this check c. Drawee Bank b. Local Store d. Local Store and Drawee Bank 3. If the primary party refuses to pay ar accept an instrument after presentment the instrument is_ a void b. dishonored d. canceed c invelid 4. An instrument states, "I promise to pay $100 to the order of Acme Co. for the sale of 10 red widgets. a. This instrument is not negotiable, because there is an express condtion. b. This last instrument is not negotiable, because there is an implied condition G. This instrument is payable from a particuler fund. d. This instrument could be negotlable. 5. Warranty Liability a. isnot subject to the conditions of presentment, dishonor and notice of dishonor b. may be lo addition to contractual iability. c occurs only when an instrument is indorsed. d both a and b. The certification of a cheak by the holder. a discharges the drawer b. discharges those indorsers prior to certification. c. commits the bank to honor the check when t is presented for payment d all of the above. 6. Order paper is negotiated by a. transfer of possession alone. c indorsement and transfer of possession. b. assinment alone d. an allonge. 7. Which of the following is a real defense to commercial paper? a. discharge in insolvency proceedings c. peyment b. lack of consideration d. none of the above 8. Val properly indorsed a check for $100 to Mary. In become the holder in due course