Question | Answer |
Which article governs the sale of personal property | article 2 |
What type of property does article 2 not concerned with | real estate,
intangible, sale of services, |
What is article 3 is concerned with | negotiable instruments |
T or F Risk of loss transfers to buyer: | true |
Consideration is expressed in a contract is known as | price |
in a contract of sale or sell what type of goods are we concerned
with | existing goods |
In a contract to sell what type of goods are we concerned with | future
the sale of movable person property must be in the amount of 500 must
be in writing |
what is another term for non re sellable goods | Specifically manufactured |
what do we call the desingated point to which the seller bears the
risk of loss | Fob point |
what does fob stand for | Free on board |
in a sale with right to return the sale is completed when the buyer
returns the goods | true |
t/f a consignment is not a sale | true |
in england prior to 1400 special courts were set up to settle disputes
laws called | law of merchants |
if commercial paper is made to bearer | bearer paper |
what is another term for a draft? | Bill of exchange |
in order by one person ordering another person to pay a certain sum of
money to a 3rd person payable on demand | draft |
the person that executes a notes is called | maker |
the person that executes a drat is called | drawer |
the person ordered to pay a draft is called | drawee |
holder | instrument designated to them |
how many requirements are there for an instrument to become negotiable? | 7 |
t/f an instrument must be in writing and signed by the person
executing it | true |
t/f the order or promise to pay an instrument must be unconditional...true
the instrument must be for a fixed amount of money | true |
one of the requirements of a negotiable instrument must be
designated | payee and drawee |
t/f if there is a conflict with the writing of the amount...must be in
words | true |
to negotiate order paper you must have | endorser and deliverer |
to negotiate bearer paper you must have delivery
which type of bond is non negotiable | registered |
which type of bond is negotiable | coupon |
what type of note is secured by personal property | collateral |
what type of note is secured by real property | mortgage note |
if a draft is both drawn and payable in the US it is | domestic draft |
another word for domestic draft | inland |
drawn up and payable outside the US | foreign |
a draft payable upon presentation is called | site draft |
a draft payable at a later date is called | time draft |
a draft drawn up by the seller of the device is called | trade acceptance |
who is the drawer on a trade acceptance | seller |
who is the drawee on a trade acceptance | buyer |
what do we call a check that requires a signature and a counter
signature | Travelers check |
a check with a voucher attached | voucher check |
a check that is presented more than 6 months after its date | stale |
an endorsement on a check must be made | trailing edge |
paper firmly attached to a check | allonge |
if a check is made payable to both husband and wife | need both sighnatures |
an endorsement consisting of the endorser only | blank |
an endorsement designated to a particular person | special endorsement |
all endorsers are liable for payment on an instrument | false |
who are the parties primarily liable for the payment on the negotiable
instrument | drawee and acceptors |
Secondarily reliable | endorsers and drawers |
what do we call the defenses against all holders except hdc | limited |
what do we call the defensses including hdc | universal |
t/f ordinary contract defenses are universal defenses | false |
t/fevery contract defense except being a minor is a universal defense | false |
what type of defense is forgery | universal |
what type of defense is fraud | universal |
Bearer | person in possession of an instrument |
Bearer Paper | a commercial paper payable to bearer; i.e to the person having possession of such |
Bill of lading | the contract existing between the consignor (shipper) and the carrier |
Bill of Sale | a document of conveyance that provides written evidence of one's title to tangible personal property |
Blank endorsment | having no words other than the signature of the endorser |
Cashier Check | a check drawn on a bank's own funds and signed by a responsible bank official |
certificate of deposit | the acknowledgement by a bank of a receipt of money with an agreement of repayment |
certified check | a check for which the bank assures that the drawer has sufficient funds to make payments |
check | an order by a depositor on the bank to pay a sum of money to a payee |
commercial paper(Negotiable instrument) | a writing drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit |
consignee | one to whom goods are shipped by common carrier |
consignor | one who ships goods by common carrier |
contract to sell | an agreement wherein a seller agrees to transfer title of goods to a buyer for a consideration (price), at a future time |