A conditional promise to pay is not a negotiable instrument.

MGMT 390 Business Law FINAL EXAM Answers


Question 14 pts

A conditional promise to pay is not a negotiable instrument.

Question 24 pts

An instrument payable "with interest" must specify a particular rate to be negotiable.

Question 34 pts

On May 1, Dooley signs a check that is payable to the order of Extra Credit Corporation and that is dated July 1. This check is

Question 44 pts

Financial institutions that exchange digital images of checks do not have to exchange the original paper checks.

Question 54 pts

The Federal Reserve System acts as a clearinghouse where banks exchange checks.

Question 64 pts

Each bank in a collection chain must pass a check on before midnight of the day of its receipt.

Question 74 pts

Filing a financing statement with the appropriate public office is the only way to perfect a purchase-money security interest in consumer goods.

Question 84 pts

A security agreement must be filed in person to be valid and enforceable.

Question 94 pts

The first security interest to be perfected is the last in priority over any other perfected security interests.

Question 104 pts

Mike owes $12,000 to Nora, $6,000 to Owen, and $6,000 to Pat. The three creditors enter into an agreement with Mike to discharge the debts on payment of a sum of $12,000 to them, to be divided proportionately. This is

Question 114 pts

Ronaldo agrees to pay Simplex Cash Store a debt that is otherwise dischargeable in bankruptcy. This is

Question 134 pts

A power of attorney is a written document.

Question 144 pts

Before a principal can ratify a contract, the agent must withdraw from the deal.

Question 154 pts

Sonia manages a Tasty Pastry store for United Food Company. To manage the business, Sonia's authority can be implied by

Question 164 pts

All employees are entitled to overtime pay.

Question 174 pts

Lew, a member of a protected class, applies for a job with Mit-E Construction Company, but fails Mit-E's employment test and is not hired. Lew believes that the test has an unintentionally discriminatory effect. If so, this is

Question 184 pts

Under the Equal Pay Act of 1963, all of the women on an employer's staff must be paid the same as all of the men.

Question 194 pts

Coco is considering forms of business organization for her confections businessCoco's Cupcakes. Most states require that a limited liability company have

Question 204 pts

Jim organized, and owns and operates, Jim's Landscaping Service in the simplest form of business organization. This is

Question 214 pts

Greta is a member of Hovercraft LLC. As a member, Greta is

Question 224 pts

Stocks represent the borrowing of funds by firms.

Question 234 pts

Caffeine Café, Inc., files its articles of incorporation with the appropriate government agency. Least likely to appear in the articles is the name of

Question 244 pts

The possession of land without right is a tenancy at will.

Question 254 pts

Mineral Products Corporation, which owns no land, has a right to mine the copper from Natural Resource Company's land. Mineral's right is