Question 35 of 50

What is the term for the transfer of a negotiable instrument in such a form that the transferee becomes a holder?

How is an order instrument, such as a check payable 'to the order of Elliot Goodseal,' properly negotiated?

A check is made payable to the order of Mark Deitsch. He signs his name on the back and negotiates it. What type of indorsement has he made, and what is the legal status of the check afterward?

Hal Cohen indorses a check in blank and negotiates it to William Hunter. To protect himself from potential loss if the check is stolen, what can Hunter do to convert the instrument back into an order instrument?

An indorser wishes to transfer an instrument without assuming liability for its payment if the drawer or maker defaults. What type of indorsement should be used?

What is the legal effect of an indorsement that reads 'Pay to Julie Thrush only, [signed] Thomas Fasulo' on a negotiable instrument?

Under the UCC, if a check is made payable to 'Ying or Mifflin,' whose indorsement is required for proper negotiation?

In the case Hyatt Corp. v. Palm Beach National Bank, a check was made payable to 'Skyscraper Building Maint[enance] J & D Financial Corp.' with the two payees listed on separate lines (a stacked-payee designation). How did the court interpret this ambiguous payee designation?

What is the primary status of a person who receives a negotiable instrument as a gift?

Which of the following acts constitutes taking an instrument for value under UCC 3-303(a)?

What are the two components of the 'good faith' requirement for a holder to achieve HDC status under the revised Article 3?

In the case Mid Wisconsin Bank v. Forsgard Trading, Inc., why did the court find that the bank acted in good faith even though it gave immediate credit on a deposited check from a customer with a history of overdrafts?

Under the UCC, what is the 'reasonable time' after which a purchaser of a check is on notice that it is overdue?

Peyton writes a check payable to a campus bookstore but leaves the amount blank, authorizing Brittany to fill it in for the price of a textbook, which is 85 dollars. Brittany fills it in for 150 dollars. Can the bookstore, which had no notice of the unauthorized completion, enforce the check as an HDC?

What is the core purpose of the shelter principle as described in UCC 3-203(b)?

Matthew and Carla collaborate to defraud Lorena, who gives Carla a negotiable note. Carla negotiates it to Larry, an HDC. Larry then negotiates it to Matthew. Can Matthew acquire HDC rights under the shelter principle?

If a check is made payable to 'Pay to the order of the County Tax Collector,' who is authorized to negotiate it?

A payee named Marie Ellison receives a check made out to 'Mary Ellison.' What is the usual practice for her to properly indorse the check?

What is the legal difference between a trust (agency) indorsement and a simple special indorsement?

Debby Morrison gives a 10,000 dollar note to Alex Jerrod for goods that turn out to be defective. Jerrod negotiates the note to Beverly Larson, who promises to pay Jerrod for it in thirty days. Before Larson pays Jerrod, she learns of the defective goods. Can Morrison assert the defense of breach of contract against Larson?

What is an allonge?

If a person purchases a 10,000 dollar note for 300 dollars from a stranger on a street corner, which requirement for HDC status is most likely to be challenged?

An instrument is dishonored when presented for payment. A holder has reason to know of the dishonor. Can this holder become a holder in due course (HDC)?

Which of the following would NOT prevent a holder from becoming an HDC, assuming all other requirements are met?

What is the status of a holder who acquires an instrument as a result of taking over a trust or estate as an administrator?

A check is payable to 'Bridgette and Tony Van Horn'. Whose indorsement is necessary for proper negotiation?

What is the primary difference between a holder and a holder in due course (HDC)?

A check that was originally payable to the order of Rita Chou is indorsed by her with only her signature. She then loses it, and Coker finds it. If Coker sells the check to Duncan for value, what has occurred?

Under what circumstances does a conditional indorsement on the back of an instrument affect its negotiability?

An indorsement reads 'For deposit only, [signed] Amber Dowel.' What kind of indorsement is this and who can become a holder of the instrument after this indorsement?

What is the key difference between an ordinary holder's rights and an assignee's rights concerning a negotiable instrument?

A time instrument is due on May 15. A person purchases it on May 16. What is the status of this purchaser?

If a check is indorsed 'Pay to Ellen Cook in trust for Roger Callahan', who has the legal rights in the instrument?

According to the case Graves v. Johnson, when a check payable to two joint payees is delivered to and possessed by one of them, what is the effect on the drawer's obligation to the other payee?

Which of the following, if apparent on the face of an instrument, would most likely call its authenticity into question and prevent a holder from being an HDC?

Kristen pays for a 5,000 dollar note by giving 2,000 dollars in cash and a 3,000 dollar check. To what extent has Kristen given value for the note to become an HDC?

An instrument is indorsed 'Pay to Allison Jong, without recourse, [signed] Sarah Jacobs'. What is the effect of the phrase 'without recourse'?

If an instrument payable to two people does not clearly state whether it is payable jointly or alternatively, how does the revised UCC resolve the ambiguity?

Abby takes an instrument from Ben, an HDC. Abby herself does not qualify as an HDC because she knew the instrument was overdue when she took it. Does Abby have the rights of an HDC?

What is the primary legal distinction between negotiating an order instrument and negotiating a bearer instrument?

If a time instrument is payable in installments, what is the effect of a default in an installment payment on its overdue status?

An agent for an insurance company receives a check payable to her, which is intended as payment to the company. To transfer the check to the company while avoiding personal liability on it, what should she indorse on the back?

A check is made payable to the order of 'my nicest cousin.' Why is this instrument nonnegotiable?

Under the UCC, what is the effect of an indorsement that reads 'Pay to Lars Johansen if he completes the renovation of my kitchen by June 1, 2009'?

Which of the following is required for a person to be a holder of a bearer instrument?

If a thief steals a check payable to cash (a bearer instrument) and delivers it to an innocent third person for value, what are the rights of the original owner against that third person?

An instrument is so irregular on its face that its authenticity is called into question. A person takes it for value and in good faith. Can this person be a holder in due course (HDC)?

What is the primary reason the concept of a holder in due course (HDC) is central to the law of negotiable instruments?

Before the 1990 revision to the UCC, what was the presumption when an instrument was made payable to two payees without specifying 'and' or 'or'?