Question

Kevin, the owner of Livestock Ranch Corporation, signs an instrument that includes the phrase “payment for this note will be made from the pro­ceeds of next year’s stock sale.” This instrument is

a.         negotiable.

b.         nonnegotiable, because payment can be made only out of a particular source.

c.         nonnegotiable, because it states an express condition to payment.

d.         nonnegotiable, because the reasons for the note are not clear on its face.

58.       Olena signs a promissory note payable to the order of Payday Loan Company. The note states that it is payable “with interest at the legal rate.” This note is

a.         negotiable.

b.         nonnegotiable, because it does not specify a rate of interest.

c.         nonnegotiable, because it is payable with interest.

d.         nonnegotiable, because the exact amount payable cannot be deter­mined from the face of the instrument.

59.       On behalf of Equity Capital, Inc., Flip signs an instrument promis­ing to pay $5,000 in gold to Growth Investments, Inc., on May 15. This in­strument is

a.         negotiable.

b.         nonnegotiable, because gold is not a medium of exchange author­ized or adopted by a government as currency.

c.         nonnegotiable, because it does not recite any consideration.

d.         nonnegotiable, because it is for an amount of $500 or more.

60.       Daria signs an instrument payable to the order of Employees Credit Union “on or before” June 15. This instrument is

a.         negotiable.

b.         nonnegotiable, because the maker can move up the payment date.

c.         nonnegotiable, because moving up the payment date is optional.

d.         nonnegotiable, because the exact payment date cannot be deter­mined from the face of the instrument.

61.       EZ Credit Company signs an instrument payable to the order of Fraser that states, “The maker of this note at the date of maturity, May 1, 2013, can extend the time of pay­ment, but for no more than a rea­sonable time.” This instrument is

a.         negotiable.

b.         nonnegotiable, because it includes an extension clause.

c.         nonnegotiable, because it is not payable within a definite time.

d.         nonnegotiable, because it is payable to a specific payee.

           

62.       Tyrone draws a check payable to “Cash” and presents it to Urban Bank for payment. This instrument is

a.         a bearer instrument.

b.         an order instrument.

c.         valid but nonnegotiable.

d.         void.

63.       Wilbur signs a note that includes a clause under which the note’s holder can delay the date of its payment indefinitely. This is

a.         an acceleration clause.

b.         an extension clause.

c.         an immaturity clause.

d.         a stop-payment clause.

64.       Will signs a check payable to “cash” and gives it to Yves. This check is

a.         negotiable.

b.         nonnegotiable, because it does not indicate a specific payee.

c.         nonnegotiable, because it is not signed by the payee.

d.         nonnegotiable, because “Yves” is not “cash.”

65.       Rye signs a $1,000 note payable, at 6 percent interest, on May 1 to Suburban Bank and writes on its face that it is “nonnegotiable.” This note is

a.         negotiable.

b.         nonnegotiable, because it is dated.

c.         nonnegotiable, because it is payable with interest.

d.         nonnegotiable, because it includes the notation “nonnegotiable.”

66.       Julie signs a check payable to the order of Kwik Mart Stores, Inc., that does not include a date. This check is

a.         negotiable.

b.         nonnegotiable, because it does not include a date.

c.         nonnegotiable, because it is payable to a corporation.

d.         nonnegotiable, because it is signed by the drawer.

Kevin, the owner of Livestock Ranch Corporation, signs an instrument that includes the phrase “payment for this note will be made from the pro­ceeds of next year’s stock sale.” This instrument is

a.         negotiable.

b.         nonnegotiable, because payment can be made only out of a particular source.

c.         nonnegotiable, because it states an express condition to payment.

d.         nonnegotiable, because the reasons for the note are not clear on its face.

58.       Olena signs a promissory note payable to the order of Payday Loan Company. The note states that it is payable “with interest at the legal rate.” This note is

a.         negotiable.

b.         nonnegotiable, because it does not specify a rate of interest.

c.         nonnegotiable, because it is payable with interest.

d.         nonnegotiable, because the exact amount payable cannot be deter­mined from the face of the instrument.

59.       On behalf of Equity Capital, Inc., Flip signs an instrument promis­ing to pay $5,000 in gold to Growth Investments, Inc., on May 15. This in­strument is

a.         negotiable.

b.         nonnegotiable, because gold is not a medium of exchange author­ized or adopted by a government as currency.

c.         nonnegotiable, because it does not recite any consideration.

d.         nonnegotiable, because it is for an amount of $500 or more.

60.       Daria signs an instrument payable to the order of Employees Credit Union “on or before” June 15. This instrument is

a.         negotiable.

b.         nonnegotiable, because the maker can move up the payment date.

c.         nonnegotiable, because moving up the payment date is optional.

d.         nonnegotiable, because the exact payment date cannot be deter­mined from the face of the instrument.

61.       EZ Credit Company signs an instrument payable to the order of Fraser that states, “The maker of this note at the date of maturity, May 1, 2013, can extend the time of pay­ment, but for no more than a rea­sonable time.” This instrument is

a.         negotiable.

b.         nonnegotiable, because it includes an extension clause.

c.         nonnegotiable, because it is not payable within a definite time.

d.         nonnegotiable, because it is payable to a specific payee.

           

62.       Tyrone draws a check payable to “Cash” and presents it to Urban Bank for payment. This instrument is

a.         a bearer instrument.

b.         an order instrument.

c.         valid but nonnegotiable.

d.         void.

63.       Wilbur signs a note that includes a clause under which the note’s holder can delay the date of its payment indefinitely. This is

a.         an acceleration clause.

b.         an extension clause.

c.         an immaturity clause.

d.         a stop-payment clause.

64.       Will signs a check payable to “cash” and gives it to Yves. This check is

a.         negotiable.

b.         nonnegotiable, because it does not indicate a specific payee.

c.         nonnegotiable, because it is not signed by the payee.

d.         nonnegotiable, because “Yves” is not “cash.”

65.       Rye signs a $1,000 note payable, at 6 percent interest, on May 1 to Suburban Bank and writes on its face that it is “nonnegotiable.” This note is

a.         negotiable.

b.         nonnegotiable, because it is dated.

c.         nonnegotiable, because it is payable with interest.

d.         nonnegotiable, because it includes the notation “nonnegotiable.”

66.       Julie signs a check payable to the order of Kwik Mart Stores, Inc., that does not include a date. This check is

a.         negotiable.

b.         nonnegotiable, because it does not include a date.

c.         nonnegotiable, because it is payable to a corporation.

d.         nonnegotiable, because it is signed by the drawer.

Answer 1

57. Kevin, the owner of Livestock Ranch Corporation, signs an instrument that includes the phrase “payment for this note will be made from the pro­ceeds of next year’s stock sale.” This instrument is: a. negotiable

58. Olena signs a promissory note payable to the order of Payday Loan Company. The note states that it is payable “with interest at the legal rate.” This note is: a. negotiable

59. On behalf of Equity Capital, Inc., Flip signs an instrument promis­ing to pay $5,000 in gold to Growth Investments, Inc., on May 15. This in­strument is: b. non negotiable, because gold is not a medium of exchange author­ized or adopted by a government as currency.

60. Daria signs an instrument payable to the order of Employees Credit Union “on or before” June 15. This instrument is: a. negotiable.