Reference no: EM13220713

Superior Company draws a check payable to Ted. Uri makes a note payable to Vital Finance Corporation. Primarily liable parties include
A) Superior, Ted, Uri, and Vital.
B) Superior, Ted, and Uri only.
C) Superior and Uri only.
D) Uri only.

Blayne writes a check "pay to the order of Cherry" drawn on Blayne's account at Dixie Bank. Cherry presents the check for payment to Dixie Bank, which accepts it. The bank is
A) not liable for payment.
B) primarily liable for payment.
C) secondarily liable for payment.
D) simultaneously liable, with Blayne, for payment.

Pacific Bank receives a check drawn by Qiana. The check is received after the established "cutoff" hour. Payment can be postponed without dishonor
A) indefinitely.
B) under no circumstances.
C) unless Qiana personally demands acceptance.
D) until the close of the next business day.

On January 1, Kane issues a note payable to Lorena on May 1. On April 29, Kane dies. In this situation, the note is
A) dishonored.
B) payable immediately.
C) payable within a reasonable time.
D) payable May 1.

Dewey is Ezra's agent and is not authorized to sign checks or notes on Ezra's behalf. Despite the lack of authority, Dewey issues a note "payable to the order of Fab Finance Company [signed] Ezra, by Dewey." Liability on this note extends to
A) Dewey and Ezra.
B) Dewey only.
C) Ezra only.
D) no one.

Bob writes a check on his account at County Bank to Darby, a famous singer. The person claiming to be Darby is an imposter, however, named Etta. Etta indorses the check to Felipe, for whom County Bank cashes it. Ultimately, the loss will most likely fall on
A) Bob.
B) County Bank.
C) Darby.
D) Felipe.

Cole issues a note "payable to the order of Cole," forges Dylan's signature as the maker, and indorses the note "pay to Eton." Cole sells the note to Eton, who negotiates it by indorsement and delivery to Franz. Franz negotiates the note to Gert. On this note, Gert can extend liability to
A) no one.
B) only Cole, Eton, or Franz.
C) only Eton or Franz.
D) only Franz.

Burt, a mentally impaired person, is asked by Carl to sign a piece of paper that Carl says is an autograph book. In fact, the document is a note. If later sued on the note by an HDC
A) Burt must pay the note.
B) Burt's best defense would be fraud in the execution.
C) Burt's best defense would be fraud in the inducement.
D) Burt's best defense would be mistake.

Vera gives Willy a $500 check as payment for a debt. Willy crudely raises the amount of the check to $5,000 and transfers it to Xtreem Sportz store for a new bike. Xtreem deposits the check in its Yankee Bank account. Vera is liable for the payment of $5,000 to
A) no one.
B) Willy, Xtreem Sportz, and Yankee Bank.
C) Willy only.
D) Xtreem Sportz and Yankee Bank only.