JURI 570 Quiz 3

JURI 570 Quiz 3 Liberty University

URI 570 Quiz: Legal Environment of Business and Contract Law

JURI 570 Quiz: Agency and Sales

JURI 570 Quiz: Negotiable Instruments and Unincorporated Entities

JURI 570 Quiz: Corporations, Debtor-Creditor Relations, and Business Regulation

1. Which of the following is the correct definition for a partnership?
2. Which of the following is correct regarding the fiduciary duties in a limited partnership?
3. Clint induces David, by fraud in the inducement, to make an instrument payable to the order of Clint. Clint then negotiates the instrument to Eric, a holder in due course, and later reacquires it from Eric. In this case:
4. When a limited partnership dissolves and winding up commences:
5. Under the UPA, which of the following acts does not bind the partnership unless authorized by all of the partners?
6. A draft involves only two parties: a drawer and a payee.
7. Zelda signs a note for $500 to First Bank. If, at the request of both Zelda and the Bank, Ann also signs the note as an accommodation maker:
8. The customary manner of disclaiming the endorser’s contractual liability is to add which of the following sets of words before or after his signature?
9. If a holder presents a note for payment to the maker, which one of the following warranties is given?
10. A partner’s receipt of notification of a fact relating to the partnership is not effective against the other partners until the receiving partner enters the relevant fact on the minutes at the next business meeting of the partnership.
11. A partner cannot assign his interest in the partnership without dissolving the partnership.
12. If Kathy indorses a check “without recourse”:
13. Once a partner becomes entitled to a distribution, he has the status of a creditor with respect to that distribution.
14. Under the UPA, which of the following liabilities of a partnership has the highest priority for payment out of partnership assets? Amounts owing to:
15. The transfer of a nonnegotiable promise or order operates as an assignment.
16. If a partner’s act is not apparently for carrying on in the ordinary course the partnership business:
17. The RULPA requires that the limited partnership certificate list the capital contribution of each general and limited partner.
18. A definite time required for negotiability would NOT be satisfied in which instance?
19. Absent an agreement otherwise, upon dissolution, a partner is entitled to which of the following after payment of partnership creditors?
20. Terry and Ernest agree to become partners in advertising and promoting the Midway Fair to be held three years hence. If they agree orally, will the partnership agreement be enforceable?
21. The Star General Partnership had assets worth $34,000 after liquidation. Frank, Gene, and Hank, equal partners, each contributed $3,000 into the capital pool at the inception of the business. Gene later loaned the business $5,000. They owe $23,000 to creditors. What will Gene get in distribution, assuming there is no agreement on the distribution of profits?
22. A certificate of deposit differs from a promissory note in that, with a certificate of deposit:
23. Unanimous written consent of all partners is necessary to add new limited partners to a limited partnership.
24. In which of the following situations would the persons be partners?
25. A maker must sign in the lower, right-hand corner of the instrument.
26. Negotiability invests commercial paper with a high degree of marketability and commercial utility by allowing it to be freely transferable and enforceable by a holder in due course.
27. Kelly wrote a check to Trish, which Trish immediately changed from $20 to $120. She negotiated the check to Carl for value, who in turn took it to Kelly’s bank for certification. Kelly’s bank checked his account and certified the check since there were sufficient funds to cover the check. Thereafter, Carl gave the check to Central Motors (CM) as part of the down payment for his car. CM presents the check to Kelly’s bank for payment and they discover the alteration. What consequence?
28. A corporation may not be a partner in a partnership.
29. The most popular and widely used unincorporated business form that provides limited liability for its members is the:
30. A partner:
31. Sharing of gross returns establishes a partnership.
32. The notice requirement of the Federal Trade Commission rule for consumer credit contracts has the effect of:
33. Under the UPA, which of the following requires the unanimous consent of the partners?
34. Order paper is negotiated by:
35. Blane indorsed his paycheck in blank and cashed it at a store where he was a well-known customer. The check was then stolen from the store. The store immediately notified Blane’s employer, who gave the drawee bank a stop payment order. The thief indorsed the check in a false name and transferred the check to a gas station/convenience store, which took the check in good faith and for value. The check was dishonored when presented to the drawee bank. Which of the following statements is true?

36. A negotiation is void if the transaction in which it occurs is void.
37. All but which of the following is required of a negotiable instrument?
38. Notes and certificates of deposit are orders to pay money to a third person.
39. Roberts, Smith, and Tomas have been partners for ten years. The partners, however, are now collecting debts, converting assets to cash, paying creditors, and distributing remaining assets to each partner. Roberts, Smith, and Tomas are engaged in:
40. Marilyn, George, and Christine pool their money to buy land for a vegetable garden. They plan to sell the produce at a roadside stand that summer. Are they partners?
41. Which of the following will destroy negotiability?
42. Which of the following need NOT be included in the certificate filed by a limited partnership under the RULPA?
43. An indorsement stating “Pay Paula Hobson only”:
44. The principal advantage of negotiable instruments is their safety.
45. A promise or order is payable at a definite time if it is payable:
46. Which of the following is a special unqualified indorsement?
47. Which of the following are not types of restrictive indorsements?
48. Words of negotiability are:
49. Real defenses include all but which of the following?
50. A check is dishonored if: