Question

Sal brings a stale check to his bank on June 1, 2003. The check is dated September 1, 2002. The bank:

Multiple Choice

• can honor the check while acting in good faith.

• owes a duty to honor the check.

• cannot honor the check, since it is more than six months old.

• must honor the check if it is otherwise properly payable.     Which of the following requires tenants to be married to each other?

• Tenancy by the entirety

• Tenancy in partnership

• Joint tenancy

• Tenancy in common Under the Bankruptcy Code, a judge is allowed to reduce the debtor's unsecured consumer debt by what percentage?

• 20%

• 50%

• 30%

• 75% Which of the following describes the type of relationship that exists between an agent and a principal?

• Manifest

• Objective

• Fiduciary

• Dependent A _____ is oral in nature.

• nuncupative will

• holographic will

• notarial will

• self-proved will A ______ cannot disclaim the bank’s responsibility for its own lack of good faith or failure to exercise ordinary care.

• creditor

• deposit agreement

• statute

• drawer If Jay signs Mila's name to a negotiable instrument without Mila's authorization or approval:

• the signature cannot be ratified later by the person represented.

• Jay is not liable on the check.

• the signature is not effective as the signature is of the unauthorized signer.

• the signature does not bind the person whose name appears. Which of the following is true of the drawer-drawee relationship?

• The drawer becomes a debtor and the drawee bank becomes the creditor at the time of opening a checking account.

• The drawer becomes the creditor and the drawee bank becomes the debtor at the time of opening an account.

• The drawer becomes the insured and the drawee bank becomes the insurer at the time of opening a checking account.

• The drawer becomes the creditor when the drawee bank pays more than the drawer has on deposit.

Answer 1

Answer to 1st Multiple choice question:

Answer: cannot honor the check, since it is more than six months old.

Explanation:Checks dated six months after this payment date do not have to be honored by a bank pursuant to the Uniform Commercial Code in the United States. Six months end on 1st March 2003. If the cheque was presented on or before 1st March 2003, then only it can be honored.

Answer to 2nd Multiple choice question:

Answer: Tenancy by the entirety

Explanation:

Tenancy in common: Parties hold separate interests in a single piece of property, which could be equal or unequal shares and interest can be acquired at different times,

Joint tenancies: Form of co-ownership in which the parties hold equal shares and possess unique rights of ownership through survivorship. Parties hold a right of survivorship: when one joint tenant dies, title to the property remains with the surviving joint tenants.

Tenancies by Entirety: Same as joint tenancies, but it has an additional requirement that is, requires that the tenants be married.

Tenancy in Partnership: Exists when partners have contributed property to the partnership or when the partnership has purchased property with partnership funds.