You already have this questions in your data base; it is under: Coursehero>>Florida>>Nova Southeastern University>>ACCT REG 5744. I have answer several questions but I want to make sure I answered properly. Thank you so much for all your help! Please let me know what the correct answers are for the following questions about Negotiable Instruments: 1.A trade acceptance usually A. Is not regarded as a negotiable instrument under the UCC. B. Must be made payable ?to the order of? a named person. C. Is an order to deliver goods to a named person. D. Provides that the drawer is also the payee. 2.Vince Price has in his possession an otherwise negotiable instrument that reads: ?I, Waldo, hereby promise to pay to the order of Mark or bearer....? ? Which of the following is true? A. Because the instrument is payable to Mark?s order, it is a draft. B. If Mark endorses the instrument, he assumes potentially greater liability to subsequent transferees than if he transfers it by mere transfer of possession. C. The instrument is nonnegotiable. D. Mark?s signature is required to negotiate the instrument 4.Under the Negotiable Instruments Article of the UCC, which of the following requirements must be met for a person to be a holder in due course of a promissory note? A. All prior holders must have been holders in due course. B. The note must be negotiable. C. The holder must be the payee of the note. D. The note must be payable to bearer. 5. Two types of liability, contract and warranty, are imposed on parties to a negotiable instrument. Which of the following statements about liability is false? A. Accommodation parties and agents signing a negotiable instrument on behalf of a principal have either contract or warranty liability. B. Every party, except a qualified endorser, who signs a negotiable instrument is either primarily or secondarily liable for payment of the instrument. C. Any person who transfers a negotiable instrument and receives consideration for it is subject to transfer warranties to any subsequent good-faith transferee unless the seller is transferring a bearer instrument without an endorsement. D. The secondary liability of an endorser of a negotiable instrument to pay upon dishonor applies only to a person entitled to enforce the instrument or to a subsequent endorser and not to prior parties. 6.A secured promissory note would be nonnegotiable if it provided that A. Additional collateral must be tendered if there is a decline in market value of the original collateral. B. Upon default, the maker waives a trial by jury. C. The maker is entitled to a 5% discount if the note is prepaid. D. It is subject to the terms of the mortgage given by the maker to the payee 7.Which of the following is a characteristic of a restrictive endorsement? A. It cannot preclude further transfer or negotiation although it purports to do so. B. It releases the endorser from liability on the instrument in the event of nonpayment by the party obligated to pay it. C. It prevents the party taking the instrument via such an endorsement from becoming a holder in due course. D. It cannot be conditional at the same time 9.Under the Negotiable Instruments Article of the UCC, which of the following statements best describes the effect of a person endorsing a check ?without recourse?? A. The person converts the check into order paper. B. The person has no liability to prior endorsers. C. The person makes no promise or guarantee of payment on dishonor. D. The person gives no warranty protection to later transferees. 10.The status of a holder in due course as opposed to a mere holder of a negotiable instrument A. Is of little consequence as a practical matter. B. Allows the holder in due course to overcome certain defenses that cannot be overcome by a mere holder. C. Allows the further negotiation of the instrument. D. Eliminates the presentment requirement 11.Karen, a business owner, bought a warehouse receipt for goods worth $9,000 from Sonny, a merchant, for $7,500. The warehouse receipt was issued ?to Tony or order.? Tony had signed his name on the back of the receipt. Karen presented the receipt to the warehouser, who refused delivery believing that Sonny may have stolen the receipt. Which of the following statements is true? A. Karen will prevail if she is a good-faith purchaser of a negotiable document of title covering the goods. B. Sonny, as a subsequent transferor, has no legal obligation to Karen on the document if she is denied the goods. C. Karen?s rights are the same whether the warehouse receipt she purchased is negotiable or nonnegotiable in form. D. Karen, as the holder of a negotiable document of title, is entitled to receive delivery of the goods even if Tony stole the underlying goods. 13.Under the Negotiable Instruments Article of the UCC, which of the following circumstances would prevent a person from becoming a holder in due course of an instrument? A. The note was purchased at a discount. B. The note was collateral for a loan. C. The person was notified that one of the prior endorsers was discharged. D. The person was notified that payment was refused 14.Teff entered Archer?s office and stole from Archer some radios and Archer?s wallet containing identification. Subsequently, representing himself as Archer, Teff induced Bane to purchase one of the stolen radios for a fair price. Bane gave Teff his check made out ?Pay to the order of Archer.? Teff endorsed the check ?Pay to the order of Crown, Archer? and transferred it to Crown for cash in the amount of the check. Crown endorsed the check ?Pay to the order of Fox, Crown? and transferred the check to Fox to be applied to his account. Bane?s check was A. Order paper initially and negotiated by Teff to Crown. B. Nonnegotiable absent a valid endorsement by the real Archer. C. Void from the beginning. D. Bearer paper when Crown took it 15.Under the Negotiable Instruments Article of the UCC, which of the following documents would be considered an order to pay? I. Draft II. Certificate of deposit A. II only. B. I only. C. Both I and II. D. Neither I nor II 16.Wilson drew a sight draft on Jimmy Foxx (a customer who owed Wilson money on an open account), payable to the order of Burton, one of Wilson?s creditors. Burton presented it to Foxx. After examining the draft as to its authenticity and after checking the amount against outstanding debts to Wilson, Foxx wrote on its face ?Accepted--payable in 10 days? and signed it. When Burton returned at the end of 10 days, Foxx told him he could not pay and was hard-pressed for cash. Burton did not notify Wilson of these facts. Two days later when Burton again presented the instrument for payment, Burton was told that Foxx?s creditors had filed a petition in bankruptcy that morning. Which of the following statements is true? A. Foxx was secondarily liable on the draft at its inception. B. Wilson had primary liability on the draft at its inception. C. The instrument in question is a type of demand promissory note. D. Foxx assumed primary liability at the time of acceptance 17.A $5,000 promissory note payable to the order of Neptune is discounted to Bane by blank endorsement for $4,000. King steals the note from Bane and sells it to Ott, who promises to pay King $4,500. After paying King $3,000, Ott learns that King stole the note. Ott makes no further payment to King. Ott is A. A holder in due course to the extent of $3,333. B. A holder in due course to the extent of $5,000. C. An ordinary holder to the extent of $0. D. An ordinary holder to the extent of $4,500 19.Which of the following is required for a valid letter of credit? A. That it is irrevocable. B. That it is in a form that is a record and is authenticated. C. That consideration is given. D. That consent by a beneficiary is given to amend or cancel it. 20.Under the Documents of Title Article of the UCC, which of the following statements is(are) true regarding a common carrier?s duty to deliver goods subject to a negotiable bearer bill of lading? I. The carrier may deliver the goods to any party designated by the holder of the bill of lading. II. A carrier who, without court order, delivers goods to a party claiming the goods under a missing negotiable bill of lading is liable to any person injured by the misdelivery. a. I only. b. Neither I nor II. c. Both I and II. d. II only."

1.A trade acceptance usually A. Is not regarded as a negotiable instrument under the UCC. B. Must be made payable \"to the order of\" a named person. C. Is an order to deliver goods to a named person. D. Provides that the drawer is also the payee. 2.Vince Price has in his possession an otherwise negotiable instrument that reads: \"I, Waldo, hereby promise to pay to the order of Mark or bearer....\" Which of the following is true? A. Because the instrument is payable to Mark's order, it is a draft. B. If Mark endorses the instrument, he assumes potentially greater liability to subsequent transferees than if he transfers it by mere transfer of possession. C. The instrument is nonnegotiable. D. Mark's signature is required to negotiate the instrument 4.Under the Negotiable Instruments Article of the UCC, which of the following requirements must be met for a person to be a holder in due course of a promissory note? A. All prior holders must have been holders in due course. B. The note must be negotiable. C. The holder must be the payee of the note. D. The note must be payable to bearer. 5. Two types of liability, contract and warranty, are imposed on parties to a negotiable instrument. Which of the following statements about liability is false? A. Accommodation parties and agents signing a negotiable instrument on behalf of a principal have either contract or warranty liability. B. Every party, except a qualified endorser, who signs a negotiable instrument is either primarily or secondarily liable for payment of the instrument. C. Any person who transfers a negotiable instrument and receives consideration for it is subject to transfer warranties to any subsequent good-faith transferee unless the seller is transferring a bearer instrument without an endorsement. D. The secondary liability of an endorser of a negotiable instrument to pay upon dishonor applies only to a person entitled to enforce the instrument or to a subsequent endorser and not to prior parties. 6.A secured promissory note would be nonnegotiable if it provided that A. Additional collateral must be tendered if there is a decline in market value of the original collateral. B. Upon default, the maker waives a trial by jury. C. The maker is entitled to a 5% discount if the note is prepaid. D. It is subject to the terms of the mortgage given by the maker to the payee 7.Which of the following is a characteristic of a restrictive endorsement? A. It cannot preclude further transfer or negotiation although it purports to do so. B. It releases the endorser from liability on the instrument in the event of nonpayment by the party obligated to pay it. C. It prevents the party taking the instrument via such an endorsement from becoming a holder in due course. D. It cannot be conditional at the same time 9.Under the Negotiable Instruments Article of the UCC, which of the following statements best describes the effect of a person endorsing a check \"without recourse\"? A. The person converts the check into order paper. B. The person has no liability to prior endorsers. C. The person makes no promise or guarantee of payment on dishonor. D. The person gives no warranty protection to later transferees. 10.The status of a holder in due course as opposed to a mere holder of a negotiable instrument A. Is of little consequence as a practical matter. B. Allows the holder in due course to overcome certain defenses that cannot be overcome by a mere holder. C. Allows the further negotiation of the instrument. D. Eliminates the presentment requirement 11.Karen, a business owner, bought a warehouse receipt for goods worth $9,000 from Sonny, a merchant, for $7,500. The warehouse receipt was issued \"to Tony or order.\" Tony had signed his name on the back of the receipt. Karen presented the receipt to the warehouser, who refused delivery believing that Sonny may have stolen the receipt. Which of the following statements is true? A. Karen will prevail if she is a good-faith purchaser of a negotiable document of title covering the goods. B. Sonny, as a subsequent transferor, has no legal obligation to Karen on the document if she is denied the goods. C. Karen's rights are the same whether the warehouse receipt she purchased is negotiable or nonnegotiable in form. D. Karen, as the holder of a negotiable document of title, is entitled to receive delivery of the goods even if Tony stole the underlying goods. 13.Under the Negotiable Instruments Article of the UCC, which of the following circumstances would prevent a person from becoming a holder in due course of an instrument? A. The note was purchased at a discount. B. The note was collateral for a loan. C. The person was notified that one of the prior endorsers was discharged. D. The person was notified that payment was refused 14.Teff entered Archer's office and stole from Archer some radios and Archer's wallet containing identification. Subsequently, representing himself as Archer, Teff induced Bane to purchase one of the stolen radios for a fair price. Bane gave Teff his check made out \"Pay to the order of Archer.\" Teff endorsed the check \"Pay to the order of Crown, Archer\" and transferred it to Crown for cash in the amount of the check. Crown endorsed the check \"Pay to the order of Fox, Crown\" and transferred the check to Fox to be applied to his account. Bane's check was A. Order paper initially and negotiated by Teff to Crown. B. Nonnegotiable absent a valid endorsement by the real Archer. C. Void from the beginning. D. Bearer paper when Crown took it 15.Under the Negotiable Instruments Article of the UCC, which of the following documents would be considered an order to pay? I. Draft II. Certificate of deposit A. II only. B. I only. C. Both I and II. D. Neither I nor II 16.Wilson drew a sight draft on Jimmy Foxx (a customer who owed Wilson money on an open account), payable to the order of Burton, one of Wilson's creditors. Burton presented it to Foxx. After examining the draft as to its authenticity and after checking the amount against outstanding debts to Wilson, Foxx wrote on its face \"Accepted-payable in 10 days\" and signed it. When Burton returned at the end of 10 days, Foxx told him he could not pay and was hard-pressed for cash. Burton did not notify Wilson of these facts. Two days later when Burton again presented the instrument for payment, Burton was told that Foxx's creditors had filed a petition in bankruptcy that morning. Which of the following statements is true? A. Foxx was secondarily liable on the draft at its inception. B. Wilson had primary liability on the draft at its inception. C. The instrument in question is a type of demand promissory note. D. Foxx assumed primary liability at the time of acceptance 17.A $5,000 promissory note payable to the order of Neptune is discounted to Bane by blank endorsement for $4,000. King steals the note from Bane and sells it to Ott, who promises to pay King $4,500. After paying King $3,000, Ott learns that King stole the note. Ott makes no further payment to King. Ott is A. A holder in due course to the extent of $3,333. B. A holder in due course to the extent of $5,000. C. An ordinary holder to the extent of $0. D. An ordinary holder to the extent of $4,500 19.Which of the following is required for a valid letter of credit? A. That it is irrevocable. B. That it is in a form that is a record and is authenticated. C. That consideration is given. D. That consent by a beneficiary is given to amend or cancel it. 20.Under the Documents of Title Article of the UCC, which of the following statements is(are) true regarding a common carrier's duty to deliver goods subject to a negotiable bearer bill of lading? I. The carrier may deliver the goods to any party designated by the holder of the bill of lading. II. A carrier who, without court order, delivers goods to a party claiming the goods under a missing negotiable bill of lading is liable to any person injured by the misdelivery. a. I only. b. Neither I nor II. c. Both I and II. d. II only."