Business Law, Text and Cases, Thirteenth Edition, Chapter 25 – Flashcards
24 test answers
Unlock all answers in this set
Unlock answers 24question
a person in possession of an instrument that is payable to bearer or indorsed in bank
answer
bearer
Unlock the answer
question
an instrument that does not designate a specific payee
answer
bearer instrument
Unlock the answer
question
a type of note issued when a party deposits funds with a bank, and the bank promises to repay the funds, with interest, on a certain date
answer
certificate of deposit (CD)
Unlock the answer
question
the most commonly used type of draft; the party the check is made payable to is the payee, the signer of the check is the drawer, and the bank that issued the check is the drawee.
answer
check
Unlock the answer
question
an unconditional written order that involves three parties
answer
draft
Unlock the answer
question
the party in a draft being ordered to pay money usually to a third party
answer
drawee
Unlock the answer
question
the party creating the draft
answer
drawer
Unlock the answer
question
allows the date of maturity to be extended into the future
answer
extension clause
Unlock the answer
question
any person in possession of a negotiable instrument that is payable either to the bearer or to an identified person that is the person in possession
answer
holder
Unlock the answer
question
the first delivery of an instrument by the maker or drawer for the purpose of giving rights on the instrument to any person
answer
issue
Unlock the answer
question
the person who makes the promise in a promissory note
answer
maker
Unlock the answer
question
a signed writing (or electronic record) that contains an unconditional promise or order to pay an exact amount, either on demand or at a specific future time
answer
negotiable instrument
Unlock the answer
question
an instrument that is payable (1) to the order of an identified person or (2) to an identified person or order
answer
order instrument
Unlock the answer
question
the party receiving payment in a draft
answer
payee
Unlock the answer
question
when a demand to either pay or accept an instrument is made by or on behalf of a person entitled to enforce the instrument
answer
presentment
Unlock the answer
question
a written promise made by one person to pay another a specified sum; sometimes referred to as just a "note"; can be made payable at a definite time or on demand
answer
promissory note
Unlock the answer
question
nearly any symbol executed or adopted by a person with the intent to authenticate a written or electronic document. can be made by a device, rubber stamp, thumb print, etc
answer
signature
Unlock the answer
question
the seller of the goods is both the drawer and the payee
answer
trade acceptance
Unlock the answer
question
the seller of the goods is both the drawer and the payee
answer
trade acceptance
Unlock the answer
question
the seller of the goods is both the drawer and the payee
answer
trade acceptance
Unlock the answer