Legal effect on the signature of a drawer

Assignment Help Business Law and Ethics

Reference no: EM13790483

Question 1: Sue receives a check from Temp Persons, Inc. (TPI). She takes the check to United Bank, TPI's bank, which refuses to cash it because there are insufficient funds in TPI's account. Sue can recover from
neither TPI nor United.
TPI only.
TPI or United.
United only.

Question 2: First National Bank may subject its employees to lie-detector tests when investigating
health and medical conditions.
losses attributable to theft.
prior work history.
suspected drug use.

Question 3: Joy hires Ken to act as her agent in the purchase of Local Delivery Services. Joy tells Ken to reveal that he is buying the firm on behalf of a third party and to tell Local's seller who that third party is. Joe is:
a disclosed principal.
an undisclosed principal.
an unscrupulous principal.
a partially disclosed principal.

Question 4: An agency relationship may be created for any legal purpose.
True
False

Question 5: Adam buys a time instrument from Britney the day after its express due date. Adam is on notice that the instrument:
had been dishonored.
is no longer negotiable.
is overdue.
is payable immediately.

Question 6: Rich signs a promissory note after a court has adjudged him to be mentally incompetent. The note is:
assignable only.
negotiable.
void.
voidable only.

Question 7: An instrument "payable to bearer" is negotiable but not transferable.
True
False

Question 8: Gail issues a check drawn on First National Bank to Housewares Depot as payment for several kitchen appliances. Later, Gail discovers defects in the goods and orders First National to stop payment on the check. Gail does not renew the order, and the bank clears the check eight months later. The bank must
recredit Gail's account only.
replace the defective goods only.
recredit the account and replace the defective goods.
none of the above.

Question 9: A forged signature has no legal effect on the signature of a drawer.
True
False

Question 10: Ace Corporation requires its employees to have a high school diploma, claiming a definite connection between a high school education and job performance. In a suit against Ace under Title VII, this requirement is shown to have a discriminatory effect. Ace has:
an affirmative action defense.
a bona fide occupational qualification defense.
a business necessity defense.
no defense.

Question 11: Acquiring a negotiable instrument after its maturity date may prevent a holder from becoming an HDC.
True
False

Question 12: An employer can consider union participation as a criterion for deciding which workers to hire.
True
False

Question 13: Pam applies for a job at a Quik Mart store but is not hired due to her gender. Pam files a suit against Quik Mart. A prima facie case is established. Pam:
loses the suit regardless of Pam's response.
loses the suit unless Pam asserts an appropriate defense.
wins the suit regardless of Quik Mart's response.
wins the suit unless Quik Mart asserts an appropriate defense.

Question 14: Mona is an agent for Nationwide Restaurant Corporation (NRC). In acting as an agent, Mona follows all of NRC's clearly stated instructions. This responsibility arises under:
no agent's duty.
the agent's duty of loyalty.
the agent's duty of notification.
the agent's duty of obedience.

Question 15: MacDonald Aircraft, Inc., issues a payroll check "to the order of Judy Smith." Smith takes the check to the First National Bank, signs her name on the back, gives it to the teller, and receives cash. The transfer of the check from Smith to the bank is:
an assignment.
a negotiation.
both a and b.
none of the above.

Question 16: North Bank issues a cashier's check for its customer Ocean Shipping, Inc. Pier Harbor Company presents the check for payment. North Bank must
honor the check.
refuse to honor the check.
stop payment on the check.
take possession of the check and recredit its customer's account.

Question 17: Applied Manufacturing Company (AMC) employs Belle as an agent. To terminate Belle's authority, AMC must notice:
Belle only.
Belle and any third parties who know of the agency relationship.
only third parties who know of the agency relationship.
the public generally.

Question 18: Pam is an administrative employee of Quality Assurance Company. Social Security contributions to help pay for Pam's loss of income on requirement are made by
neither Pam nor Quality Assurance.
Pam and Quality Assurance.
Pam only.
Quality Assurance only.

Question 19: Ron signs an instrument using an "R" with a circle around it. With this mark for a signature, the instrument is:
negotiable.
nonnegotiable, because an initial does not state the signer's name.
nonnegotiable, because an initial is not a signature.
nonnegotiable, because a simple initial implies a lack of binding intent.

Question 20: Employers are required to establish retirement plans for their employees.
True
False

Reference no: EM13790483

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