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Business Law Q2
Question | Answer |
---|---|
sale of tangible moveable property | Article 2 of Uniform Commercial Code |
origin of Uniform Commercial Code | law merchant of English common law |
indicates monetary consideration in a contract | price |
a document that evidences ownership of personal property | bill of sale |
a sale concerning existing goods | contract of sale |
a sale concerning future goods | contract to sell |
if amount of sale of tangible moveable property is $500 or more, contract must be in writing by time of suit in order to be enforceable | statute of frauds |
exception to statute of frauds | 1. if buyer has received & accepted the goods 2. if buyer pays for the goods 3. judicial admission in court 4. specifically manufactured goods |
auctioneer signs memorandum indicating goods, price & buyer | auction sales |
can't refuse highest bid | auction without reserve |
can refuse highest bid if it doesn't meet reserve | auction with reserve |
title doesn't pass until buyer receives & approves the goods | sale on approval |
title will pass once buyer receives goods; buyer can return goods by time specified in contract | sale with right to return |
manufacturer appoints someone as their agent to sell their goods; title does not pass from manufacturer to seller | consignment |
cash on delivery | does not affect passage of title or risk of loss |
field in bill of lading; the point to which title transfers from seller to buyer | free on board |
contract between common carrier & seller (shipper) for shipment of goods; the point to which the seller owns the goods & bears the risk of loss | bill of lading |
a writing which is drawn in a special form that can be transferred from person to person as a substitute for money | negotiable instrument |
the transfer of the instrument from one person to another | negotiating |
the first delivery of the instrument to the original payee | issuing |
negotiable instrument made payable to a named payee & negotiated by endorsement/delivery | order paper |
negotiable instrument made payable to bearer or cash & negotiated by delivery alone | bearer paper |
an order by one person to another person to pay sum certain in money to a third person on demand or a fixed future date | draft |
person who draws up & executes a draft | drawer |
party that is ordered to pay on a draft | drawee |
person who an instrument is made payable | payee |
a promise to pay specific amount of money over a period of time; 2 parties | promissory note |
person who executes a promissory note | maker |
person who promises to pay | maker |
person to who a promissory note is made payable | payee |
person to who an instrument is made payable | payee |
person who endorses an instrument/anyone that endorses that endorses or signs an instrument on the reverse side | endorser |
anyone to whom any negotiable instrument is made payable through an endorsement | endorsee |
anyone in possession of an instrument that has been negotiated to them | holder |
the drawee, once they accept the instrument for payment | acceptor |
anyone in possession of an instrument that is bearer paper | bearer |
T or F: there is no such thing as an oral negotiable instrument | true |
requirements of negotiability | 1. signed writing 2. order to pay/promise to pay 3. unconditional 4. sum certain in money 5. payable on demand of on a fixed future date 6. payable to the order of a named payee 7. payee & drawer must be identified |
T or F: an IOU is not a negotiable instrument | true |
a written contract obligation, usually executed by a corporation or governmental body under seal of the body & usually secured by property of that association | bond |
bond with detachable interest-paying stub & a payment date | coupon bond |
a promissory note payable to a named payee & the payee's name is registered on the books & record of the corporation | registered bond |
Is a registered bond negotiable or non-negotiable? | non-negotiable |
promissory note which is sealed by personal property | collateral note |
promissory note secured by real property | real estate mortgage note |
maker of real estate mortgage note | mortgagor |
lender (real estate mortgage note) | mortgagee |
promissory note with due date, not secured by property, and issued by business under corporate seal | debenture |
acknowledgement by a bank that they have received money & promised to pay it back with interest by some future date | certificate of deposit (CD) |
a draft that is both drawn & payable within U.S. | domestic/inland draft |
either drawn up in a foreign country or payable in a foreign country or both | foreign draft |
When does title pass for existing goods? | at the time of the transaction |
goods already owned & produced | existing goods |
When does the risk of loss pass for existing goods? | at the time of the transaction |
When does title & risk of loss pass in a contract to sell? | at a future point, such as time of receipt |
Regarding free on board, who bears the risk of loss? | seller |
origin of Article 3 of UCC | law merchant |
How many requirements of negotiability? | 7 |
T/F There is no such thing as an oral negotiable instrument | true |
Negotiable instrument: Handwriting controls over _____ | numeral |
Negotiable instrument: Typewriting controls over _____ | printing |
Negotiable instrument: ______ controls over typewriting | handwriting |
T/F A coupon bond is negotiable | true |
T/F A registered bond is non-negotiable | true |
a draft that is payable immediately | sight draft |
a draft that is payable on a future date (post-dated) | time draft |
an order by the seller of goods to the buyer of goods ordering them to pay for the goods on a fixed future date | trade acceptance |
The drawer of a trade acceptance is the... | seller |
The payee of a trade acceptance is the... | payee |
The drawee of a trade acceptance is the... | buyer |
A trade acceptance is a type of... | draft |
a draft drawn on a bank | check |
drawer on a check | person with funds on deposit (depositor) |
drawee on a check | bank |
the bank takes funds out of the bank account and puts the funds into a separate account | certified check |
What is the best type of check to receive? | certified check |
T/F You cannot stop payment on a certified check | true |
T/F A certified check cannot be staledated | true |
a check wherein the same bank is both the drawer and the drawee | cashier's check |
a type of check that must be signed twice | traveler's check |
a check wherein one bank is drawer and another bank is drawee | bank draft |
a check with stubs or a carbon copy used as a record of who it is for, the amount, and date | voucher check |
an oral stop payment order on a check is good for ___ ___ | 14 days |
a written & signed stop payment order on a check is good for ___ ___ | 6 months |
transferring from one person to another as a substitution for payment | negotiation |
the place of endorsement, located on left reverse side | trailing edge |
a piece of paper permanently affixed to the back side under the trailing edge | allonge |
T/F Misspelling a payee's name is not fatal to negotiation | true |
T/F If there is more than one payee, all must endorse | true |
an endorsement with the signature of the payee only with no added words | blank endorsement |
an endorsement made payable to another payee | special endorsement |
A blank endorsement will convert ____ paper to ____ paper | order to bearer |
an endorsement "for deposit only" | restrictive endorsement |
an endorsement that restricts the use of an instrument for a particular purpose | restrictive endorsement |
an endorsement that excludes endorsee from liability | qualified endorsement |
In order to make a qualified endorsement, you must include the words... | "without recourse" |
T/F All endorsers are liable for warranties | true |
Which endorsers are liable for payment ? | blank, special & restrictive |
Primary liability for payment on a draft lies with the... | drawee/acceptor |
Primary liability for payment on a note lies with the... | maker |
Secondary liability for payment on a draft lies with the... | endorser (except qualified) & drawers |
The words "_____ _____" before a signature makes the endorser primarily liable | payment guaranteed |