1. A signature generally must be signed or ________ by an authorized agent to im
ID: 337422 • Letter: 1
Question
1. A signature generally must be signed or ________ by an authorized agent to impose liability on the signor.
a. Notarized
b. Witnessed
c. Genuine
d. Made under oath
2. Because of the _________ of the signature, the capacity in which a person signs commercial paper is usually obvious.
a. Authenticity
b. Location
c. Font
d. Size
3. An agent who fails to bind his/her principal because of lack of authority will usually be personally liable to which of the following?
a. Third parties only
b. A principal
c. A surety
d. A principal or a surety
4. The _______ is the primary party to a draft.
a. Endorser
b. Maker
c. Drawer
d. Drawee
5. ____ is the primary party to a note.
a. Endorser
b. Maker
c. Drawer
d. Drawee
6. A ____________ party to an instrument is the person who endorses a negotiable instrument.
a. Performance
b. Primary
c. Secondary
d. Presentment
7. Which of the following is the maker of notes or accepters of drafts?
a. Secured parties
b. Primary parties
c. Secondary parties
d. Brokers of record
8. Executing a note essentially assumes the note has been ______ by the maker.
a. Obligated
b. Negotiated
c. Presumed
d. Accepted
9. After obtaining a judgment, a judgment creditor cannot pursue enforcement procedures against a debtor who fails to repay voluntarily.
a. True
b. False
10. Many secured debts become uncollectible.
a. True
b. False
11. Secured creditors cannot lose their claim to the secured property.
a. True
b. False
12. A secured creditor has an interest in one or more items of the debtor's personal property.
a. True
b. False
13. The type of personal property that can be used collateral in a secured transaction is loosely defined and limited by Article 9.
a. True
b. False
14. Article 9 does not limit the personal property in which a security interest can be taken to tangible personal property.
a. True
b. False
15. In determining the classification of goods, it is necessary to take into account the status of the debtor who is buying the property.
a. True
b. False
16. It is necessary for value to be given for a creditor to create a security interest.
a. True
b. False
17. Mel has a(n) __________ lien on Ellen’s car after he replaced her clutch. The lien will stay in place until Ellen pays for the car repairs.
a. Guarantor's
b. Artisan's
c. Mechanic's
d. Judicial
18. An artisan’s lien cannot be claimed by which of the following?
a. A manufacturer
b. A common carrier of goods
c. A jeweler who repaired a watch
d. The owner of a storage facility
19. A(n) __________ is a security interest in personal property in favor of one who has performed services on the personal property
a. Security Deposit.
b. Mechanic's lien.
c. Artisan's lien.
d. Color of title.
20. Security for a creditor without involving an interest in the property, where the security for the creditor is provided by a third person's promise to be responsible for the debtor's obligation, is a(n) _____________.
a. Foreclosure sale
b. Suretyship
c. Artisan's lien
d. Mechanic's lien
21. A party who limits his or her promise to a single transaction or to a single creditor is a(n) ____________.
a. Obligee
b. General guarantor
c. Special guarantor
d. Creditor
Explanation / Answer
1. A signature generally must be signed or ________ by an authorized agent to impose liability on the signor.
a. Notarized
b. Witnessed
c. Genuine
d. Made under oath
2. Because of the _________ of the signature, the capacity in which a person signs commercial paper is usually obvious.
a. Authenticity
b. Location
c. Font
d. Size
3. An agent who fails to bind his/her principal because of lack of authority will usually be personally liable to which of the following?
a. Third parties only
b. A principal
c. A surety
d. A principal or a surety
4. The _______ is the primary party to a draft.
a. Endorser
b. Maker
c. Drawer
d. Drawee
5. ____ is the primary party to a note.
a. Endorser
b. Maker
c. Drawer
d. Drawee
6. A ____________ party to an instrument is the person who endorses a negotiable instrument.
a. Performance
b. Primary
c. Secondary
d. Presentment
7. Which of the following is the maker of notes or accepters of drafts?
a. Secured parties
b. Primary parties
c. Secondary parties
d. Brokers of record
8. Executing a note essentially assumes the note has been ______ by the maker.
a. Obligated
b. Negotiated
c. Presumed
d. Accepted
9. After obtaining a judgment, a judgment creditor cannot pursue enforcement procedures against a debtor who fails to repay voluntarily.
a. True
b. False
10. Many secured debts become uncollectible.
a. True
b. False
11. Secured creditors cannot lose their claim to the secured property.
a. True
b. False
12. A secured creditor has an interest in one or more items of the debtor's personal property.
a. True
b. False
13. The type of personal property that can be used collateral in a secured transaction is loosely defined and limited by Article 9.
a. True
b. False
14. Article 9 does not limit the personal property in which a security interest can be taken to tangible personal property.
a. True
b. False
15. In determining the classification of goods, it is necessary to take into account the status of the debtor who is buying the property.
a. True
b. False
16. It is necessary for value to be given for a creditor to create a security interest.
a. True
b. False
17. Mel has a(n) __________ lien on Ellen’s car after he replaced her clutch. The lien will stay in place until Ellen pays for the car repairs.
a. Guarantor's
b. Artisan's
c. Mechanic's
d. Judicial
18. An artisan’s lien cannot be claimed by which of the following?
a. A manufacturer
b. A common carrier of goods
c. A jeweler who repaired a watch
d. The owner of a storage facility
19. A(n) __________ is a security interest in personal property in favor of one who has performed services on the personal property
a. Security Deposit.
b. Mechanic's lien.
c. Artisan's lien.
d. Color of title.
20. Security for a creditor without involving an interest in the property, where the security for the creditor is provided by a third person's promise to be responsible for the debtor's obligation, is a(n) _____________.
a. Foreclosure sale
b. Suretyship
c. Artisan's lien
d. Mechanic's lien
21. A party who limits his or her promise to a single transaction or to a single creditor is a(n) ____________.
a. Obligee
b. General guarantor
c. Special guarantor
d. Creditor
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