Question

1. Kwan wrote a check to Manuel Garcia. Manuel indorsed the check "Manuel Garcia". This check is now:

		non-negotiable
		special paper
		order paper
		bearer paper

2. Homer died at age 85 and left all his property to Joe, his butler. The news of the new will that Homer executed three months before his death naming Joe as the sole beneficiary surprised everyone. By his prior will, Homer had bequeathed his estate to his three children, Bart, Lisa and Maggie. The court heard proceedings to determine the validity of the new will since Homer's rejection of his children was uncharacteristic of him. The court will most likely set aside the new will based on:

	a.	constructive trust
	b.	undue influence
	c.	undue hardship
	d.	spendthrift trust

Answer 1

1 (D)

where the endorser signs his name only, and it becomes payable to bearer. Manuel indorsed the check "Manuel Garcia". then it become bearer paper in the hand of person who possess it.

2. (A)

If someone has possession of property that but it does not belog to them or they obtained it unfairly through fraud or breach of a fiduciary duty, it is known as constructive trust  The constructive trust is set up to solve the unfair situation that has happened.