Download BA3021 Multiple Choice Chapters 24-27 Exam Study Guide and more Exams Advanced Education in PDF only on Docsity!
BA3021 Multiple Choice Chapters
24-27 Exam Study Guide
24-1. Lightspeed, Inc., makes supercomputers that feature advanced technology. To inhibit Lightspeed's export of its products to other countries, Congress can a. confiscate all profits on exported supercomputers. b. expropriate all profits on exported supercomputers c. set quotas on exported supercomputers. d. tax exported supercomputers - ANSWER c. set quotas on exported supercomputers. 24-2. Kenya issues bonds to finance the construction of an international airport. Kenya sells some of the bonds in the United States to Lacy. A terrorist group destroys the airport, and Kenya refuses to pay interest or principal on the bonds. Lacy files suit in a U.S court. The court will hear the suit a. if Kenya's acts constitute a confiscation. b. if Kenya's acts constitute an expropriation.. c. if Kenya's selling bonds is a "commercial activity." d. under no circumstances. - ANSWER c. if Kenya's selling bonds is a "commercial activity." 24-3. To obtain new computers, Liberia accepts bids from U.S. firms, including Macro Corporation and Micro, Inc. Macro wins the contract. Alleging impropriety in the awarding of the contract, Micro files a suit in a U.S. court against Liberia and Macro. The court may decline to hear the suit under a. the act of state doctrine.. b. the doctrine of sovereign immunity. c. the Export Administration Act.
d. the World Trade Organization. - ANSWER a. the act of state doctrine. 24-4. An Australian seller and a U.S. buyer form a contract that the buyer breaches. The seller sues in an Austrahan court and wins damages, but the buyer's assets are in the United States. If a U.S. court enforces the judgment, it will be because of a. the act of state doctrine. b. the doctrine of sovereign immunity. c. the principle of comity. d. the World Trade Organization. - ANSWER c. the principle of comity. 24-5. ' General Auto Corporation makes cars in the United States. To boost the sales of General Auto and other domestic automakers, Congress can a. neither set quotas nor tax imports. b. only set quotas on imports. c. only tax imports. d. set quotas and tax imports - ANSWER d. set quotas and tax imports 24-6. Global Construction, Inc., is a U.S. firm. Helen, a U.S. citizen, works for Global in a country outside the United States. Inez, a citizen of a foreign country, also works for Global outside the United States. Helen and Inez believe that they are being harassed on the job, in violation of U.S. law. This law protects a. Helen and Inez. b. Helen only. c. Inez only. d. neither Helen nor Inez. - ANSWER b. Helen only. 24-7. The United States has a common law legal system. Common law systems are based on a. administrative rules and regulations. b. case law.
bearer 25-2. Oberon makes out a check "Pay to the order of bearer." This is a. a bearer instrument and an order instrument. b. a bearer instrument only. c. an order instrument only. d. none of the choices. - ANSWER b. a bearer instrument only. 25-3. Craig signs a promissory note payable to the order of Debit Loan Company. The note states simply that it is payable "with interest." This note is a. negotiable. b. nonnegotiable, because it does not specify a particular rate of interest. c. nonnegotiable, because it is payable to a specific party. • d. nonnegotiable, because.it states only that it is payable "with interest. - ANSWER a. negotiable. 25-4. To pay for a new truck, Tri-state Transport Company issues a draft in favor of Uno Motor Sales, Inc. A draft is a. a conditional promise to pay money. b. an unconditional written order to pay money. c. a promise to pay money.- d. a promise to deliver goods at a future date. - ANSWER b. an unconditional written order to pay money. 25-5. Loren writes a check for $100 payable to Jana on Loren's account at Corn County Bank. Loren is a. the drawee. b. the drawer. c. the holder. d. the payee. - ANSWER b. the drawer. 25-6. To pay for an office building, Keysha executes a negotiable instrument in favor of
Leah. They are the only two parties to the instrument. This is a. a certificate of deposit. b. a check. c. a draft. d. a promissory note. - ANSWER d. a promissory note. 25-7. Macro Mart Industries, Inc., issues an instrument in favor of National Credit Corporation. To be negotiable, the instrument need not , a. be an unconditional promise or order to pay. b. be payable on demand or at a specific time. • c. be signed by Macro Industries. d. recite the consideration given in exchange for it - ANSWER d. recite the consideration given in exchange for it 25-8. Riza executes an instrument is favor of Pauline. For the instrument to be negotiable, Riza's signature - - a. may be anywhere on the instrument. b. must be in the lower right hand comer.. c. must be on the back. d. must not be on the instrument. - ANSWER a. may be anywhere on the instrument. 25-9. Quality Products, Inc., signs an instrument payable to Regional Distributors, Inc., that includes the notation "as per contract." This instrument is a. negotiable. b. nonnegotiable, because an obligation with respect to it is stated in another writing. c. nonnegotiable, because it is governed by another writing. d. nonnegotiable, because it states a condition to payment. - ANSWER a. negotiable. 25-10. Timor signs a check payable to Vid Vu Corporation. The check does not include a
26-4. Bathsheba writes out a check for $500, but does not specify a payee. Ciara steals the check and makes it payable to herself. She negotiates the check to Debra, who takes it in good faith and without notice. Regarding payment, Bathsheba is a. liable to Ciara and Debra. b. liable to Ciara, but not Debra. c. liable to Debra, but not Ciara. d. not liable to Ciara or Debra. - ANSWER c. liable to Debra, but not Ciara.
26-5. Judith contracts with Ivan to fix her roof, and she writes Ivan a check, but he never makes the repairs. Ivan transfers the check to Hurtado, who knows that Ivan breached the contract, but decides to cash the check anyway. Hurtado can attain HDC status as to a. any defense Judith might have against payment. b. only any personal defense Judith might have against payment. c. only Ivan's breach, which is Judith's personal defense against payment. d. none of the choices. - ANSWER d. none of the choices.
26-6. River contracts with Sebastian for monthly $2,000 shipments of coffee to River's Flow, A Coffee. Shop. River pays in advance with a $12,000 note. One month later, Sebastian sells the note to Truly for $11,000. When the note is sold, Sebastian is a. an HDC for $12,000. b. an HDC for $2,000.. c. an HDC for $1,000. d. not an HDC. - ANSWER b. an HDC for $2,000.
26-7. Demosthenes opens an account at College Bank with a $4,000 check drawn on another bank and
payable to him. He indorses the check in blank. The bank credits his account and allows him to draw on the $4,000 immediately. The bank knows of no defense to the check. The bank is a. an HDC to the extent that Demosthenes draws against the $4,000 balance. b. an HDC for the full amount of the check. c. an HDC to the extent of any amount that is collected on the check. d. not an HDC. - ANSWER a. an HDC to the extent that Demosthenes draws against the $4,000 balance.
26-8. Teon signs a note that states, "Payable in thirty days." Ursa buys the note on the thirty-first day. Ursa is on notice that the note. a. has been dishonored. b. is no longer negotiable. c. is overdue. d. is payable immediately - ANSWER c. is overdue
26-9. Joelle writes out a check payable to the order of Kristen. Kristen receives the check but wants to negotiate it further to her friend Lucas. Kristen can negotiate the check further by a. delivery only. ' b. indorsement only. c. only delivery and indorsement. d. neither delivery nor indorsement. - ANSWER c. only delivery and indorsement.
26-10. Robin indorses a check, "Pay to Highway. Equipment Corporation if they deliver the backhoe by June 1, 2012." This indorsement is a. a blank indorsement.
Farley's payment discharges ' a. all of the parties. b. only Farley. c. only Gabriella. d. only Heather. - ANSWER a. all of the parties
27-5. Mariena who cannot read English, signs a note after Nimrod tells her that it is a credit application. If later sued by an HDC, Mariena's best defense would be a. duress. b. mistake. c. fraud in the inducement. d. fraud in the execution. - ANSWER d. fraud in the execution.
27-6 Linwood Company writes a check to Maxime Corporation drawn on Linwood's account at Neighborly Bank. Maxime presents the check to the bank for payment. If the bank accepts the check, the bank is a. not liable for payment. b. primarily liable for payment. c. secondarily liable for payment. d. simultaneously liable for payment. - ANSWER b. primarily liable for payment.
27-7. Jenna gives a $500 note to Keyton to deliver a load of fresh seafood to Jenna's store. On delivery, the seafood is spoiled. Jenna may defend her decision not to pay the note based on a. breach of warranty. b. fraud in the inducement. c. lack of consideration. d. undue influence - ANSWER a. breach of warranty.
- Hamish writes a check on his account at Indigo Bank to Jada to pay a preexisting debt. Jada negotiates the check to Kendra by indorsement. Before Hamish or Jada may be liable on the check, it must be a. lost and unpaid. b. presented for payment and dishonored, for which notice must be given. c. presented for payment and dishonored, without notice. d. presented for payment and paid. - ANSWER b. presented for payment and dishonored, for which notice must be given.
- Giana writes a check on her account at Harbor Bay Bank to Itzak, a famous investor. The person purporting to be Itzak is an imposter, however, named Jeno. Jeno negotiates the check to the bank. Liability for the check is on , a. Harbor Bay Bank. b. Giana. c. Itzak. d. Jeno - ANSWER a. Harbor Bay Bank
27-10. Undertow Plumbing Products, Inc., authorizes Vitor to use company checks to buy plumbers' tools. Vitor writes a check to Wholesale Hardware, Inc., for $100 over the price of a purchase, for which the seller returns cash. When Wholesale presents the check for payment, it may recover a. nothing. b. the amount stated in the check. c. the amount of the overpayment only. d. the price of the tools only. - ANSWER b. the amount stated in the check
