Business law 25

Trisha loaned Brian $600 evidenced by a promissory note. When Brian paid off the loan, he did not ask Trisha for the note. She sold it to Carin, a holder in due course. Brian does not have to pay Carin since he already paid Trisha the full $600.

There are three parties on a promise instrument: the maker, the drawee, and the payee.

Tyron purchased a $2900 promissory note from Jared for the discounted amount of $2500. Tyron paid value, in good faith and without notice of any outstanding claims against this promissory note that read, 'Pay to the order of Jared $2900 on July 1, 2009, for the purchase of a 2001 Ford Taurus provided no major problems with the car arise prior to said payment date.' Tyron is a holder in due course of a negotiable note.

issuer

Which of the following would be notice of an overdue instrument?

Felicia, an elderly woman, does not speak or read English well. Felicia is a recent immigrant to this country. A dishonest immigration officer tells Felicia to sign several documents as being necessary to maintain her legal alien status. Unknown to Felicia, she signs a promissory note. The immigration officer thereafter sells the note to Neighborhood Bank, a holder in due course, who goes after Felicia for payment of the note. Felicia\"s defense to the Neighborhood Bank is:

Commercial paper is a contract to pay money.

Sonny has a negotiable instrument which he gives to Cheryl as a birthday present. Sonny is a holder in due course on the instrument. As it turns out, Cheryl can only collect on the instrument if she has holder in due course status. If Cheryl sues to collect this instrument, what will be the result?

Sophie issues a promissory note made 'payable to the order of Molly.' Molly indorses the note by signing her name and gives the note to Dana. Which of the following is correct?

To be negotiated, bearer paper must simply be delivered to the recipient.

Laurel Speckle received a check from State University. She indorsed the check as follows: 'For Deposit only, /s/ Laurel Speckle.' Laurel\"s indorsement is a

Kent Weston wrote a check for $500 payable to the order of Chester Jones. Chester indorsed the back of the check as follows: 'Chester Jones.' The check is now:

A 'holder' of order paper can be described as:

Francenie has a checking account at Corner Bank. She wants tickets to an upcoming concert. She writes a check to Ticketmaster for the cost of two tickets. In this scenario:

Under the UCC, a holder in due course is a holder who has given value for the instrument. Which of the following holders have given value for the instrument?

Valley National Bank issued a note promising to repay an investor on October 1, 2011, three years from the date of issue, plus interest. The note:

The evening news was full of stories about how Levine sold fraudulent negotiable instruments to investors around the country. Two days later, Brighty, who did not hear the news reports, bought some of the fraudulent negotiable instruments from a swindled investor. Can Brighty claim the position of a holder in due course considering the publicity of the scam?

To be negotiable, a check must be in writing. Under the UCC, a check:

Which of the following can be negotiable?

In June, The Seascape Gallery sells an oil painting to Collegiate Systems, Inc. Collegiate promises to pay for the painting in three months. The gallery prepares a draft ordering Collegiate Systems to pay $3,000 to First Bank on September 15. Collegiate Systems signs the draft. The draft is a: