Question

Part 1 - True or False - Circle the correct answer for each question. (1 point each). 1. T F The location of a maker's signature on a promissory note affects its enforceability and negotiability. A note payable, "Sixty days after Maker's death," is negotiable under the U.C.C. 2. TF 3. TF Commercial paper made payable "to order of cash" is a bearer instrument. 4. I F A finder of lost bearer commercial paper can become a holder. 5. TF An indorsement "pay to the order of Mary" is a blank endorsement. 6. TF The usual way to disclaim indorser's liability is to add the words without recourse" along with the indorser's signature. 7. I F A person whose signature has been forged on an instrument is usually liable for payment to holders in due course. T F Under the Code, a reasonable time for presentment on a check is 30 days. 9. I F The FTC has changed the effect of the holder in due course doctrine in consumer credit transactions. 10. T F Under the Code, deposits made by check are available for immediate drawing by the depositing customer. 11. T F The customer bears a duty of reasonably prompt and careful examination of both the account statements and the paid items made available by the bank. 12. TF A collecting bank has the duty to act reasonably.

Answer 1

1. True

2.True

3. True

4. True

5. False

6. True

7. True

8. True

9. True

10. False

11. true

12. True