1 points

QUESTION 13

1. Within his will, Fred creates a trust for the benefit of Wilma and her family to come into existence upon Freds death. This is known as:

   	a.	a testamentary trust.
   	b.	a constructive trust.
   	c.	a resulting trust.
   	d.	a living trust.

1 points

QUESTION 14

1. X, Inc., issues a promissory note payable to Y Company. For the promissory note to be negotiable, it must

   	a.	recite the consideration to be paid for it
   	b.	signed by the payee
   	c.	be payable on demand or at a definite
   	d.	must be a conditional promise to pay

1 points

QUESTION 15

1. A signs an instrument in which she promises to pay B a certain price for her Tesla. This will qualify as a negotiable instrument if it meets all of the requirements for negotiability, including that it is payable in

   	a.	common stock equal to the car's value
   	b.	any of the above choices
   	c.	goods equal in price to the value of the car.
   	d.	money

1 points

QUESTION 16

1. Z signs a written instrument I owe you $43,000, signs it, and gives it to Q. This instrument is

   	a.	negotiable
   	b.	not negotiable, because it does not include an express promise to pay
   	c.	not negotiable, because it does not state any condition to paymeent
   	d.	not negotiable, because it does not recite any consideration.

1 points

QUESTION 17

1. A signs a promissory note to a bank stating it is being signed in accordance with a contract for the sale of lumber dated May 1. This instrument is

   	a.	not negotiable, because it expressly refers to a contract
   	b.	not negotiable, because it includes the specific date of acontract
   	c.	not negotiable because banks cannot easily process commodities
   	d.	probably negotiable

1 points

QUESTION 18

1. Zelmo negotiates an order instrument payable to Maggie by

   	a.	delivery with anu necessary indorsement
   	b.	by delivery alone
   	c.	delivery with an assignment of all rights under a contract
   	d.	presenting it in response to a demand by Maggie

1 points

QUESTION 19

1. G signs a check payable to H and gives it to him. H indorses the back simply by signing his name, and transfers the check to I. To negotiate the check to J, I must

   	a.	sign "I" on the back..
   	b.	obtain Js signature on the back.
   	c.	only deliver the check to J.
   	d.	write pay to the order of J [signed] I on the back.

1 points

QUESTION 20

1. L, a lawyer for M & M, acquires a promissory note from Norma by promising to pay for the note in thirty days. L may be a Holder in Due Course when she

   	a.
   	b.	promises to pay the face value due on the note
   	c.	actually paying for the note.
   	d.	acquires possession of the note

1 points

QUESTION 21

1. S gifts a check to T who takes the check in good faith and without notice of any claim, defense, or defect. With respect to this check, T is

   	a.	a holder in due course
   	b.	none of the choices apply
   	c.	merely an assignee
   	d.	an ordinary holder.

1 points