Reference no: EM132175868
1. On February 1st, Ted wrote a $500 check to Sears for new appliances. On February 2nd, Ted died. Ted’s bank learned of his death on February 5th. When Ted’s check to Sears arrives at the bank on February 6th, can the bank pay it?
a. Yes, the bank can pay checks for up to 10 days after the date of death if the checks were written before the death.
b. No because the check is stale.
c. No.
d. It depends on whether the appliances have been delivered to Ted’s house.
2. Carol hired Ben to remodel her kitchen, including custom cabinets and other woodworking craftsmanship. Upon completion of the job, Carol would not pay the outstanding balance. Ben can _______________ .
a. none of the answers are correct. Ben should have gotten his money up front.
b. repossess the custom cabinets even though they are now fixtures.
c. place a mechanic’s lien on Carol’s property.
d. place an artisan’s lien on Carol’s property.
3. Which of the following actions does not discharge of a negotiable instrument:
a. payment in full.
b. alteration.
c. cancellation.
d. presentment.