JURI 570 Quiz Negotiable Instruments

JURI 570 Quiz Negotiable Instruments and Unincorporated Entities

Module 5: Week 5 — Module 6: Week 6.

1. When a limited partnership dissolves and winding up commences:
2. The RUPA treats a partnership as a legal entity in all but which of the following respects?
3. Foreign limited partnerships do not have to operate in another country.
4. Under the RUPA, a partner who does not have actual authority from all of the partners may still bind the partnership by:
5. O’Houlihan and seven of his associates decide to form a limited partnership to operate an office complex. This business must be formed in accordance with the:
6. Which of the following are not types of restrictive indorsements?
7. Which of the following is true of dissociation?
8. Presentment for payment is excused if the person entitled to enforce the instrument cannot with reasonable diligence present the instrument.
9. Under the UPA, any suit in contract against the partners must name all of them as defendants.
10. An indorsement stating “Pay Paula Hobson only”:
11. What is considered “partnership property” is determined primarily by the partners’ intentions.
12. The transfer of a nonnegotiable promise or order operates as an assignment.
13. Which of the following is true with respect to a defective formation of a limited partnership?
14. Erin stole a paycheck from Carl prior to his indorsing it. She then forged Carl’s signature and transferred the check to a gas station which took it in good faith, for value, without notice, and without reason to question its authenticity. The gas station:
15. Real defenses include all but which of the following?
16. Ricardo is the holder of a check that contains the indorsement “Without Recourse, (signed) Mary Roberts.” This indorsement:
17. To be negotiable, the instrument must satisfy all except which one of the following requirements?
18. A partner:
19. A drawee bank’s refusal to certify a check constitutes a dishonor of the instrument.
20. Paul is driving a truck delivering goods for his partnership when he negligently backs into a customer’s new car. The customer sues the partnership and recovers $6,000 in damages. What liability do the other partners have for Paul’s actions?
21. A corporation may not be a partner in a partnership.
22. Under the RUPA, during winding up, the partnership must apply its assets first to discharge the obligations of partners who are creditors on parity with other creditors, subject to any other laws.
23. Which of the following is a special unqualified indorsement?
24. Zoron Company purchased a truck from Ace Motors. The sales personnel at Ace know that Anton Green is an executive at Zoron. To pay for the truck, Anton delivered a $35,000 note to Ace and signed it “Anton Green, Agent.” In this case:
25. The notice requirement of the Federal Trade Commission rule for consumer credit contracts has the effect of:
26. Laura is in possession of a check which contains the following indorsement, “Sam Smith, without recourse, for collection only.” The indorsement would be classified as:
27. Franz signs a $1,000 note payable to ABC Bank. If, to help Franz get the loan approved, Amy also signs the note as an accommodation maker:
28. Absent an agreement otherwise, upon dissolution, a partner is entitled to which of the following after payment of partnership creditors?
29. Colleen is admitted to the partnership of Elmore & Monticello and makes an initial capital contribution of $10,000. Two years later, when liabilities of the partnership exceed its assets by $20,000, the firm is dissolved. Paul had loaned the firm $5,000 six months before Colleen was admitted; Scott had loaned the firm $8,000 three months after Colleen was admitted. Colleen has:
30. Under the RUPA, no person may become a member of a partnership without the consent of all the partners.
31. If Kathy indorses a check “without recourse”:
32. Presentment is a condition to the holder’s right to recover from parties with primary liability.
33. Jan Arthur writes a $200 check to Bruce Nole who indorses it “Bruce Nole.” Bruce gives the check to Anne Tate who indorses it “Without Recourse. Anne Tate.” Anne sends the check to Joe Black, MD to pay her medical bill. If the bank refuses to honor the check, Black:
34. A check is a draft payable on demand.
35. A drawee bank “accepts” a check by certification.
36. Which article of the UCC deals with “negotiable instruments”?
37. A definite time required for negotiability would NOT be satisfied in which instance?
38. A promise or order is payable at a definite time if it is payable:
39. Creation of a limited partnership does not require more formalities than formation of a general partnership.
40. The principal advantage of negotiable instruments is their safety.
41. Jane, Kelly, and Lois are partners in an accounting firm, but Jane intends to retire and withdraw from the partnership at the end of the year. Under the RUPA, Jane is liable to the firm’s creditors:
42. Which of the following is correct regarding the fiduciary duties in a limited partnership?
43. A transfer of order paper:
44. Partners may elect to have the partnership not be a separate taxable entity, so that only the partners are taxed.
45. If there is no indorsee designated on an indorsement bearing only the indorser’s signature, it is a(n):
46. A person who receives a share of the profits of a business is presumed to be a partner.
47. The Code provides that which of the following provisions may be included in an instrument without adversely affecting negotiability?
48. Michelle and Margaret agree to form a partnership. The partnership contract between Michelle and Margaret does not have to be in writing in order to be enforceable in the courts.
49. Negotiability invests commercial paper with a high degree of marketability and commercial utility by allowing it to be freely transferable and enforceable by a holder in due course.
50. An accommodation party will always be secondarily liable on an instrument.