1. In an international sale of goods, Cielo SA, the buyer, and Drones Inc., the seller, use a bankers acceptance. Essentially, this instrument

1. In an international sale of goods, Cielo SA, the buyer, and Drones Inc., the seller, use a bankers acceptance. Essentially, this instrument

a. acknowledges a deposit of funds payable to the holder.

b. orders the buyer to pay a specified amount to the seller.

c. promises that the maker will pay a specified amount to another party.

d. orders the buyers bank to pay a specified amount to the seller.

5. Wen writes an instrument that states it is payable to X. The instrument is a. nonnegotiable, because it is payable to

a nonexistent person.

b. nonnegotiable, because it cannot be transferred by indorsement.

c. nonnegotiable, because it does not state that it is payable to order.

d. negotiable

6. Brie signs an instrument in which she promises to pay Carmen a certain price for her Dodge Dart. The instrument will be negotiable if it meets all of the requirements for negotiability, including that it is payable in

a. any of the choices.

b. goods equal in value to the market price of the car.

c. services equal in value to the market price of the car.

d. money.

9.

Steel Mill Inc. signs an instrument that states with certainty a fixed amount to be paid at the time the instrument is payable. This ensures that

a. the amount payable can fluctuate as a result of market conditions.

b. interest may be payable at a fixed or variable rate.

c. the amount may be determined by information not in the instrument.

d. the value of the instrument can be determined with clarity.

10. In an international sale of goods, Cielo SA, the buyer, and Drones Inc., the seller, use a bankers acceptance. Essentially, this instrument

a. acknowledges a deposit of funds payable to the holder.

b. orders the buyer to pay a specified amount to the seller.

c. promises that the maker will pay a specified amount to another party.

d. orders the buyers bank to pay a specified amount to the seller.

16. Donut Shop signs a promissory note for $50,000 in favor of Enterprise Lending Inc. The note includes an acceleration clause. This note is

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

b. negotiable.

c. nonnegotiable, because payment can be demanded early if a specified event occurs.

d. nonnegotiable, because the maturity may be extended into the future.

5. Wen writes an instrument that states it is payable to X. The instrument is a. nonnegotiable, because it is payable to

a nonexistent person.

b. nonnegotiable, because it cannot be transferred by indorsement.

c. nonnegotiable, because it does not state that it is payable to order.

d. negotiable

6. Brie signs an instrument in which she promises to pay Carmen a certain price for her Dodge Dart. The instrument will be negotiable if it meets all of the requirements for negotiability, including that it is payable in

a. any of the choices.

b. goods equal in value to the market price of the car.

c. services equal in value to the market price of the car.

d. money.

9.

Steel Mill Inc. signs an instrument that states with certainty a fixed amount to be paid at the time the instrument is payable. This ensures that

a. the amount payable can fluctuate as a result of market conditions.

b. interest may be payable at a fixed or variable rate.

c. the amount may be determined by information not in the instrument.

d. the value of the instrument can be determined with clarity.

10. In an international sale of goods, Cielo SA, the buyer, and Drones Inc., the seller, use a bankers acceptance. Essentially, this instrument a. acknowledges a deposit of funds payable to the holder. b. orders the buyer to pay a specified amount to the seller. c. promises that the maker will pay a specified amount to another party. d. orders the buyers bank to pay a specified amount to the seller.

5. Wen writes an instrument that states it is payable to X. The instrument is a. nonnegotiable, because it is payable to

a nonexistent person.

b. nonnegotiable, because it cannot be transferred by indorsement.

c. nonnegotiable, because it does not state that it is payable to order.

d. negotiable

6. Brie signs an instrument in which she promises to pay Carmen a certain price for her Dodge Dart. The instrument will be negotiable if it meets all of the requirements for negotiability, including that it is payable in a. any of the choices. b. goods equal in value to the market price of the car. c. services equal in value to the market price of the car. d. money. 9. Steel Mill Inc. signs an instrument that states with certainty a fixed amount to be paid at the time the instrument is payable. This ensures that a. the amount payable can fluctuate as a result of market conditions. b. interest may be payable at a fixed or variable rate. c. the amount may be determined by information not in the instrument. d. the value of the instrument can be determined with clarity. Direct Connect Company orders a quantity of wire from Electric Supply Inc. To finance the purchase, Direct signs a note that includes a reference to the parties contract, a payment schedule, and

a security agreement. This note is a. negotiable.

b. nonnegotiable, because it refers to a security agreement.

c. nonnegotiable, because it refers to the parties contract.

d. nonnegotiable, because it refers to a payment schedule.

16. Donut Shop signs a promissory note for $50,000 in favor of Enterprise Lending Inc. The note includes an acceleration clause. This note is

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

b. negotiable.

c. nonnegotiable, because payment can be demanded early if a specified event occurs.

d. nonnegotiable, because the maturity may be extended into the future.