A) Under the fictitious payee rule,Lucía will not be held liable.
B) Under the imposter rule,Lucía will be held liable.
C) Under the transferor rule,Lucía will be held liable.
D) Under the payee rule,Lucía will be held liable.
E) Under the forgery rule,Lucía will be held liable.
G) A) and B)
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A) Anne is correct in stating that Floyd should seek recovery from Rahul only if Hema has filed bankruptcy because,otherwise,Floyd should be pursuing litigation against Hema.
B) Anne is correct.
C) Anne is correct only if Rahul is able to pay and has not filed bankruptcy.
D) Anne is correct unless the note is for over $10,000,in which case Floyd can seek recovery from her without resorting to recovery from Rahul or Hema.
E) Anne is incorrect.Floyd may seek recovery from her without first seeking recovery from Rahul.
G) D) and E)
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A) Lara,the payee,bore a risk of loss and,although Liam is not entitled to return of the funds,his debt to Lara is discharged.
B) Liam is entitled to a return of the funds only if he can establish that he notified ABC Bank of the problem within 30 days of receiving the bank statement showing the alteration.
C) Liam is entitled to a return of only ½ of the funds because in such cases,the collecting bank,XYZ Bank,and the drawer,Liam,must share the loss.
D) Liam is entitled to a refund if he can establish that XYZ Bank failed to exercise ordinary care in taking the instrument.
E) As a matter of law,the presenting bank is charged with notice of forgeries;therefore,XYZ must take the loss,and Liam is entitled to a return of his funds.
G) B) and C)
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A) That although a representative of the plaintiff misinformed the defending employer of the contents of the written document,the defendant's representative had sufficient opportunity to read the document;and the defending employer was therefore liable for dues of all its employees.
B) That while the defending employer would be liable for all dues under common law,because of applicable federal labor law,the defending employer was liable for dues only for employees working out-of-town within the area of the union involved.
C) That the defending employer had to pay no dues at all because a representative of the plaintiff wrongfully misrepresented the contents of the written document.
D) That the defending employer was liable for all the dues regardless of whether a representative of the plaintiff misinformed the defending employer of the contents of the written document and regardless of whether the defendant's representative had an opportunity to read it.
E) That the defending employer had to pay only the dues of the employees who were working out-of-town within the area of the union involved because a representative of the plaintiff wrongfully misrepresented the contents of the written document.
G) A) and E)
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A) If Jirah is a holder in due course and unaware that Charla signed on behalf of Prida's.
B) If Jirah is unaware that Charla signed on behalf of Prida's.
C) If Jirah is a holder in due course.
D) If Charla failed to disclose that she was an agent of Prida's.
E) If Jirah is not a holder in due course and unaware that Charla signed on behalf of Prida's.
G) D) and E)
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A) Based on public policy,the plaintiff was denied recovery although no negligence was found on the part of either party.
B) Because only the bank was found negligent,the plaintiff was denied recovery.
C) Because only the bank was found negligent,the plaintiff was entitled to recover the value of the checks.
D) Because both the plaintiff and the bank were found negligent,the plaintiff was denied recovery.
E) Because both the plaintiff and the bank were found negligent,the plaintiff recovered only 50% of his losses.
G) None of the above
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A) Rabia's bank
B) Chloe's bank
C) Rabia,as primary owner of The Furniture Shop
D) The Furniture Shop
E) Chloe
G) None of the above
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A) An accommodation party has primary liability as a maker only if all other parties have filed bankruptcy,and secondary liability in any other case regardless of whether the accommodation party is the maker or endorser.
B) An accommodation party has primary liability as either a maker or endorser only if all other parties to the instrument have filed bankruptcy.
C) As a maker,an accommodation party has primary liability;but as an endorser,the party has secondary liability.
D) An accommodation party has primary liability both as a maker and as an endorser.
E) An accommodation party has secondary liability both as a maker and as an endorser.
G) B) and D)
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A) The Furniture Shop
B) Rabia's bank
C) Chloe's bank
D) Chloe
E) There is no holder in this instance
G) B) and E)
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A) Within sixty days of the check's date.
B) Within sixty days of the endorsement.
C) Within twenty-four hours of the check's date.
D) Within thirty days of the endorsement.
E) Within thirty days of the check's date.
G) All of the above
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A) Electronic signatures are not widely accepted because of the likelihood of fraud.
B) Banking companies are prohibited from having policies that deem the merchant responsible for a buyer's fraudulent charges.
C) Many banking companies have policies that deem the merchant responsible for the charge if the buyer's payment is fraudulent.
D) Many banking companies have policies that deem the buyer responsible for fraudulent charges.
E) There are few risks for companies who conduct business through an online banking system.
G) C) and D)
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A) Only at a place designated in the instrument.
B) By any commercially reasonable means,through a clearinghouse procedure,or at a place designated in the instrument.
C) By any commercially reasonable means or at the place designated in the instrument,but not through a clearinghouse procedure.
D) By any commercially reasonable means.
E) Only through a clearinghouse procedure.
G) D) and E)
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Real defenses are as follows:
1.Infancy ...View Answer
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1.Infancy ...
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A) Primary liability
B) Signature liability
C) Payee liability
D) Secondary liability
E) Warranty liability
G) All of the above
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A) Issuers and acceptors are primarily liable for a negotiable instrument,while drawers and endorsers are secondarily liable.
B) Drawers and endorsers are primarily liable,while issuers and acceptors are secondarily liable.
C) Issuers and drawers are primarily liable,while acceptors and endorsers are secondarily liable.
D) Drawers are primarily liable,while issuers,acceptors,and endorsers are secondarily liable.
E) Acceptors and endorsers are primarily liable,while issuers and drawers are secondarily liable.
G) A) and E)
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B) False
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B) False
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B) False
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A) Felicia is primarily liable,and Arut and Gibson are secondarily liable.Branson is not liable since he did not sign the note.
B) Felicia is primarily liable,and Arut,Gibson,and Branson are secondarily liable.
C) Only Felicia,because when Felicia reacquired the note,she cancelled Arut's,Gibson's,and Branson's endorsements.
D) Felicia,Arut,Gibson,and Branson are equally liable.
E) Only Felicia,because the liability of past holders was renunciated.
G) C) and E)
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B) False
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