Question

11. Ivy signs a check payable to Jon and gives it to him. Jon indorses the back of the check by signing his name, and transfers the check to Ked. To negotiate the check to Luis, Ked must

a.	write "Ked" on the back.
b.	write "pay to the order of Luis [signed] Ked" on the back.
c.	deliver the check to Luis.
d.	obtain Luis's signature on the back.

12.       Rollo obtains a check payable to his order from Simone. Rollo signs the back and gives the check to Trey. Trey writes "Pay to Trey" above Rollo's signature. When Trey writes "Pay to Trey" above Rollo's signature, the check becomes

a.	a bearer instrument.
b.	an order instrument.
c.	a promissory note.
d.	a nonnegotiable instrument.

                  13.       Rollo obtains a check payable to his order from Simone. Rollo signs the back and gives the check to Trey. Trey writes "Pay to Trey" above Rollo's signature. After Trey writes "Pay to Trey" above Rollo's signature, further negotiation of the check

a.	requires Rollo's re-indorsement and delivery.
b.	requires delivery alone.
c.	requires Trey's indorsement and delivery.
d.	is not possible.

                  14.       Mike receives a payroll check from National Computer Systems, Inc., and indorses it by signing his name on the back of the check. This is

a.	a blank indorsement.
b.	a qualified indorsement.
c.	a restrictive indorsement.
d.	a special indorsement.

                  15.       Dora receives a check from Eagle Corporation. Dora indorses the check to First National Bank by writing "pay to First Nat'l Bank only" and signing her name. This is

a.	a blank indorsement.
b.	a qualified indorsement.
c.	a restrictive indorsement.
d.	a special indorsement.

                  16.       Jen makes a gift of a check to Kilroy who takes it in good faith and without notice of any claim, defense, or defect. With respect to this check, Kilroy is

a.	an extraordinary holder in due course.
b.	an ordinary check passer.
c.	an ordinary holder.
d.	an ordinary holder in due course.

17.       Derby Stables (Derby) writes a check to Extendo Credit, Inc. (Extendo) that is drawn on Derby's account at Farm & Ranch Bank (Farm & Ranch) . If the bank does not accept the check, liability for its amount is on

a.	Derby.
b.	Extendo.
c.	Farm & Ranch.
d.	the holder of the check.

18. Dirk is the maker of a note, on which Erv is secondarily liable. Friendly Credit Company (Friendly Credit) is the current holder of the note. Erv will be obligated to pay the note if

a.	Dirk defaults on the note.
b.	Friendly Credit breaches a transfer warranty.
c.	Friendly Credit negotiates the note to a third party.
d.	Friendly Credit presents the note for payment.

19. Seymour writes a check on his account at Platinum Bank to Teri to pay a debt. Teri negotiates the check by indorsement to Rosanna, who presents it for payment to Onyx Bank. Teri is

a.	not liable for payment under any circumstances.
b.	primarily liable.
c.	secondarily liable.
d.	simultaneously liable.

20. Seymour writes a check on his account at Platinum Bank to Teri to pay a debt. Teri negotiates the check by indorsement to Rosanna, who presents it for payment to Onyx Bank If Onyx Bank dishonors the check, Rosanna can obtain payment from Teri

a.	if Rosanna timely notifies Teri.
b.	only if Seymour refuses to pay the check.
c.	under any circumstances.
d.	under no circumstances.

Answer 1

Question	Answers
11	deliver the check to Luis.	In This case in order to negotitate, handovering of the check is very important
12	an order instrument.	The transcations involves ordering the bank which is why its called an order instruument
13	requires Trey’s indorsement and delivery.	For Further negotitation Trey must indorse on back and also handover the cheque
14	a blank indorsement.	Its on open indorsement with out any restriction or condtitions
15	a restrictive indorsement.	It has an conditions
16	an ordinary holder.
17	Derby
18	Dirk defaults on the note	Since he is secondary liable
19	secondarily liable.	In this case teri is seondary liable as his second party to it
20	if Rosanna timely notifies Teri.	Rosanna can recover money from teri