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Q:
Jen signs a check "pay to the order of Key" drawn on Jen's account in Little Bank to buy Key's car. Jen asks Little Bank to indicate on the face of the check that it will accept it when Key presents it for payment. If the bank agrees, this will be
a. a cashier's check.
b. a certified check.
c. a trade acceptance.
d. a traveler's check.
Q:
An instrument "payable to bearer" is negotiated by delivery.
Q:
Elmo pays First National Bank $1,000 plus a service fee to draw a check on itself made payable to Go Delivery Service. This is
a. a cashier's check.
b. a certified check.
c. a trade acceptance.
d. a traveler's check.
Q:
Orin owns Pilot's Landing Office Park. His ownership rights include the right to sell or give away the property without restriction, as well as the right to comÂmit waste, if she chooses. Orin's ownership interest is
a. a fee simple absolute.
b. a leasehold estate.
c. a life estate.
d. the power of eminent domain.
Q:
An instrument "payable to bearer" is transferable but not negotiable.
Q:
Rikki signs a check "pay to the order of Scholar University" drawn on Rikki's account in State Bank to pay her tuition. Rikki is
a. the certifier.
b. the drawee.
c. the drawer.
d. the payee.
Q:
Bakri owns a house. In the house, on a tile floor is a throw rug. Most likely to meet the definition of a fixture is
a. the house.
b. the throw rug.
c. the tile floor.
d. none of these choices.
Q:
Lucky owns Mud Flats Ranch, which is situated on certain Nevada acreage. The exterior boundaries of the land extend
a. 100 feet into the earth and 100 feet into the atmosphere.
b. one mile into the earth and one mile into the atmosphere.
c. to infinity and beyond.
d. to the center of the earth and up to the farthest reaches of the atmosphere.
Q:
A check "payable to the order of bearer" is neither an order instrument nor a bearer instrument.
Q:
A bearer instrument is an instrument that does not designate a specific payee.
Q:
Kris presents an instrument that states "pay to the order of Liv" to Metro Bank for payment. This is a special type of draft drawn on a bank, ordering the bank to pay a fixed amount of money on demand. This is
a. a certificate of deposit.
b. a check.
c. a debit card transaction receipt.
d. a trade acceptance.
Q:
Luke owns a farm near Marshalltown, Iowa, with stands of trees serving as windbreaks. Luke grows corn on the property. When Luke sells the farm to Nina, if the contract does not specify otherwise, the sale includes
a. neither the crops nor the trees.
b. the crops and the trees.
c. the crops only.
d. the trees only.
Q:
A maker of an instrument that is payable at a definite time does not have the option of paying before the stated date.
Q:
Ian buys a cell phone in Jiffy Mart, using the means that accounts for more retail payments than any other. This means of payment is
a. a commercial check.
b. a debit card.
c. a personal check.
d. a trade acceptance.
Q:
Chita owns the land on which Downwind Farm is situated, plus the farmhouse, barn, and other structures permanently attached to the land. Chita's brother Elvin owns everything else on the farmimplements, seed, and so on. The real property is owned by
a. Chita and Elvin.
b. Chita only.
c. Downwind Farm.
d. Elvin only.
Q:
A check is not negotiable if it is payable on demand.
Q:
Scott presents an instrument that states "pay to the order of Scott" to Town Bank for payment. This instrument is the most common type of negotiable instrument, which is
a. a certificate of deposit.
b. a check.
c. a note.
d. a trade acceptance.
Q:
Kailin owns a farm near Manhattan, Kansas, with a farmhouse, barn, and other structures permanently attached. Kailin grows soybeans on the property. A pond lies within the boundaries. Land includes
a. the pond, the soil, and the structures.
b. the pond and the soil only.
c. the soil only.
d. the structures and the soil only.
Q:
Even after a tenant assigns a lease, the tenant may be obligated to pay rent.
Q:
Brendan signs a check "pay to the order of City College Bookstore" drawn on his account in Delta Bank to pay for his current semester's textbooks. The bookstore deposits the check in its account in Eagle Bank. Like most checks, this check is
a. a one-party instrument.
b. a four-party instrument.
c. a three-party instrument.
d. a two-party instrument.
Q:
Instruments that say nothing about when payment is due are payable on demand.
Q:
Even after a tenant sublets leased premises, the tenant may be obligated to pay rent.
Q:
Currently, it is not clear which, if any, laws apply to the security of e-money payment information.
Q:
An instrument payable "with ten hours of services" is negotiable.
Q:
A tenant cannot withhold rent for any reason.
Q:
Stored-value cards are a form of digital cash.
Q:
To be negotiable, an instrument must be payable in a fixed amount.
Q:
Generally, a tenant must pay agreed-to rent even if the tenant moves out as long as the move is unjustifiable and the lease is in force.
Q:
Stating on an instrument the underlying terms of an agreement renders the instrument nonnegoÂtiable.
Q:
Gaining unauthorized access to an electronic fund transfer system is a felony.
Q:
When a landlord sells leased premises to a third party, any existing leases terminate automatically.
Q:
An instrument that states simply "I.O.U." is not negotiable.
Q:
A customer has sixty days from the date of receipt of a statement of an electronic transfer to notify the financial institution of any errors.
Q:
Rubber stamp signatures can be legally binding signatures.
Q:
If a customer's debit card is lost or stolen, the customer will not be liable for any unauthorized use of the card.
Q:
The implied warranty of habitability does not apply to substantial physical defects that a landlord knows about.
Q:
A financial institution must encode a returned check with certain information.
Q:
A tenant has a duty to maintain in a reasonably safe condition those arÂeas under his or her control.
Q:
A signature must be the full name of a party.
Q:
Financial institutions that exchange digital images of checks do not have to exchange the original paper checks.
Q:
A tenant is not responsible for any damage to leased premises.
Q:
A promissory note can be a negotiable instrument.
Q:
A tenant is not responsible for the ordinary wear and tear of leased premises.
Q:
A bank that encodes information on an item after its issue warrants to any subsequent bank that the information is correct.
Q:
Constructive eviction occurs when a tenant moves off the premises in reÂtaliation against the landlord.
Q:
On a trade acceptance, the drawer is also the payee.
Q:
The Federal Reserve System acts as a clearinghouse where banks exchange checks.
Q:
A lease is enforceable even if the premises are intended to be used for an illeÂgal purpose.
Q:
A personal check cannot be a negotiable instrument.
Q:
Each bank in a collection chain must pass a check on before midnight of the day of its receipt.
Q:
Under the covenant of quiet enjoyment, a landlord promises that a tenÂant will not be disturbed in the possession of the premises.
Q:
A time draft is payable on sight.
Q:
Generally, contract doctrines apply to a landlord-tenant relationship.
Q:
Mountain Bikes, Inc. (MBI), and Nero enter into a contract for a sale of a mountain bike. MBI, a merchant who deals in goods of the kind sold, makes implied and express warranties in connection with the sale. The Magnuson-Moss Warranty Act attempts to prevent deception in warranties by
a. displacing the UCC as the primary source of warranty rules.
b. making warranties easier to understand.
c. prohibiting disclaimers of warranties.
d. requiring sellers to give written warranties for consumer goods.
Q:
The first bank to receive a check for payment is the depositary bank.
Q:
The possession of land without right is a tenancy at will.
Q:
The bank on which a check is drawn is the payor bank.
Q:
Robert is selling his used lawnmower. He wants to disclaim any implied warranties. Roberta. cannot disclaim implied warranties.b. should include a written disclaimer that the lawnmower is being sold"as is."c. should orally disclose all known faults of the lawnmower.d. should include a written warranty of title.
Q:
A landlord is usually required to give some period of notice to terminate a periodic tenancy.
Q:
Eppie gives a check to Fund Investments to buy 100 shares of stock in GR8 Tech Corporation for Eppie. The price of the shares is constantly fluctuating. Fund Investments asks Eppie to leave the amount of the check blank and allow it to fill in the price when making the purchase. Eppie agrees. Fund Investments buys the stock when the price is $4,000, but fills in the check for $5,000. The check is negotiated as payment for a $5,000 debt to Hasty Accounting Services, which takes the check in good faith and without notice of Fund Investments's act. Hasty later learns that Fund Investments was not authorized to fill in the check for $1,000 over the price. Is Hasty an HDC? If so, for how much?
Q:
Sweet Candy, Inc., and Tasty Treats stores enter into a contract for a sale of confections. Sweet, a merchant who deals in goods of the kind sold, makes express warranties in connection with the sale. Under the UCC, at the time a contract is formed, an express warranty can be disclaimed or modified
a. by clear, conspicuous language called to the buyer's attention.
b. by implied affirmations of fact relating to the goods.
c. in any way that the seller sees fit for the ordinary purpose.
d. in no way.
Q:
A fixed-term tenancy terminates automatically when its terms ends.
Q:
Commercial Credit Company has in its possession an instrument dated May 1, 2009. The instrument is payable to the order of Alpha Company "on June 1, 2009," for $5,000. In the upper left corner is an address for Beta Corporation10 Corporate Park Avenue, Chicago, Illinoisand in the lower right corner is the signature of "Delta, Inc., By Eve, President." In the lower left corner is stamped "ACCEPTED: Beta Corporation by Frank, President, May 5, 2009." On the back is the signature of "Alpha Company by Gail, President." What type of instrument is this? Is it negotiable? Who, if anyone, is primarily liable on this instrument on May 1? On May 5? Who, if anyone, is secondarily liable on this instrument?
Q:
Regal Autos, Inc., sells cars to consumers. To avoid liability for oral exÂpress warranties, each sales agreement should note that a car is sold
a. as is.
b. in perfect condition.
c. subject to warranties included in the written contract only.
d. with no known defects.
Q:
GR8 Products, Inc., warrants its goods to be free of defects. If Heck issues an instrument to obtain goods from GR8 that prove defective, Heck can avoid paying on the instrument
a. only if it is a check.
b. only if it is a note.
c. whether it is a check or a note.
d. under no circumstances.
Q:
A fixed-term tenancy is created when a lease does not specify its duration.
Q:
Regional Wood Products Company and Sylvia enter into a contract for a sale of lumber. Regional knows the purpose for which Sylvia will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises
a. if the buyer is relying on the seller to select suitable goods.
b. if the buyer asks for it.
c. if the seller is a merchant who deals in goods of the kind sold.
d. in conjunction with lease contracts, not sales contracts.
Q:
A fixed-term tenancy terminates at the end of the specified period without notice.
Q:
Vera gives Willy a $500 check as payment for a debt. Willy crudely raises the amount of the check to $5,000 and transfers it to Xtreem Sportz store for a new bike. Xtreem deposits the check in its Yankee Bank account. Vera is liable for the payment of $5,000 to
a. no one.
b. Willy, Xtreem Sportz, and Yankee Bank.
c. Willy only.
d. Xtreem Sportz and Yankee Bank only.
Q:
Fred goes to Carla, a knowledgeable dog breeder, and tells her that he wants to get a dog that will be good with small children. Carla sells Fred a dog. When Fred takes the dog home, it bites both his small children and causes them serious injuries. Fred can sue Carla for breach of
a. an express warranty.
b. an implied warranty of fitness for a particular purpose.
c. an implied warranty of merchantability.
d. a warranty of title.
Q:
Eminent domain is the right of an owner in fee simple abÂsolute to use his or her property in whatever way he or she wishes.
Q:
Sigrud buys spiked mountain-climbing shoes from Rockridge Gear store. The spikes come out of the shoes when Sigrud is on the side of a mountain, causÂing her to be injured in a fall. Rockridge breached
a. an express warranty.
b. an implied warranty of fitness for a particular purpose.
c. an implied warranty of merchantability.
d. a warranty of title.
Q:
Opal asks Paolo, who does not understand English, to sign what Opal says is an application to open a bank account. In fact, the "application" is a note. If sued on the note by an HDC, Paolo's best defense would be
a. extreme duress.
b. fraud in the execution.
c. fraud in the inducement.
d. mistake.
Q:
Taking private property for public use requires the payment of "just compensation."
Q:
Ocean Vessels, Inc., and Pacific Harbor Company enter into a contract for a sale of a boat. Ocean is a merchant who deals in goods of the kind sold. The goods are defective. Under the UCC, the implied warranty of merchantability is breached
a. only if Ocean did not know about and could not have discovered the defect.
b. only if Ocean did not know about the defect.
c. only if Ocean knew about or could have discovered the defect.
d. regardless of what Ocean knew or could have discovered.
Q:
Rodeo Ranch's agent Slim is authorized to draw checks on Rodeo Ranch's account in Town Bank. Upper Range Corporation is a Rodeo Ranch supplier. Slim writes a check "pay to the order of Upper Range [signed] Slim," indorses the check in Upper Range's name, and deposits it in his account in Verity Bank. If Verity Bank collects payment, the ultimate party most likely to suffer the loss is
a. no one.
b. Rodeo Ranch.
c. Town Bank.
d. Upper Range.
Q:
Adverse possession is a means of obtaining title to property without the delivery of a deed.
Q:
Good Tire Company and Hiway Auto Service enter into a contract for a sale of tires. Good Tire is a merchant who deals in goods of the kind sold. Under the UCC, an implied warranty of merchantability arises
a. automatically in sales contracts.
b. only if the buyer asks for it.
c. only if the seller does not expressly disclaim it.
d. only in conjunction with lease contracts, not sales contracts.
Q:
Bob writes a check on his account at County Bank to Dona, a famous singer. The person claiming to be Dona is an imposter, however, named Edy. Edy indorses the check to Frank, for whom County Bank cashes it. Ultimately, the loss will most likely fall on
a. Bob.
b. County Bank.
c. Dona.
d. Frank.
Q:
For a party to take by adverse possession, the party's possession must not be hostile to the true owner's rights.