Business Law Chapter 14 Hw

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Chapter 14 Name: Haidar Shbeeb ACC351 Section A True/False Indicate whether the statement is true or false and provide a brief explanation explaining your answer. _T_ 1. A time draft is payable at a definite future time. _F_ 2. A certificate of deposit is a type of note. (394) _F_ 3. An instrument is nonnegotiable unless the word "negotiable" is printed on it. (Doesn’t matter/No difference) (395) _T_ 4. A signature can consist of initials signed by a party. _T_ 5. A certificate of deposit may be negotiable even if it does not contain an express promise to pay. X _F_ 6. To be negotiable, an instrument may be signed anywhere. _F_ 7. An order stating "I wish you would pay" is not sufficient to create a negotiable instrument. (397) _T_ 8. A conditional promise to pay is not a negotiable instrument. _T_ 9. To be negotiable, an instrument must be payable in money. _T_ 10. A check "payable to the order of bearer" is neither an order instrument nor a bearer instrument. _T_ 11. Normally, if the numerical amount and the written amount on a check differ, the words outweigh the figures. _T_ 12. An instrument payable "with interest" have to specify a particular interest rate to be negotiable. (400) _T_ 13. A transfer by negotiation can make it possible for a holder to receive more rights in the instrument than its prior possessor had. _F_ 14. The recipient of a negotiable instrument becomes a holder regardless of the form of the transfer. _T_ 15. A blank endorsement specifies no particular indorse. _F_ 16. A payee whose name is misspelled on an instrument cannot indorse the instrument. (404) _F_ 17. An instrument payable to two persons jointly requires the endorsement of both of the payees for negotiation. (404) _F_ 18. A person who receives an instrument as a gift does not possess the rights
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