Problem 1. A ___________ is continuously employed to conduct a series of transactions, while a _________ is employed to conduct a single transaction or a small, simple group of transactions.
Problem 2. A principal is ________ when the third party lacks knowledge or reason to know of the principal's existence and the principal's identity.
Problem 3. A _____________ is identical to a business corporation in most respects except that it involves the incorporation of a professional practice such as lawyers, doctors, or accountants.
Problem 4. In transacting partnership business, each partner owes a ___________.
Problem 5. Managers in a ___________ LLC are elected and removed by a majority vote of the LLC members.
Problem 6. __________corporations do not issue stock and do not expect to make a profit.
Problem 7. A _________ corporation is formed when the promoters substantially comply with each of the mandatory conditions precedent to incorporation of the business.
Problem 8. Traditionally, the _____________ has had the duty and authority to manage the corporation.
Problem 9. To conduct business at a shareholder's meeting, a _________ of the outstanding shares must be present at the meeting.
Problem 10. _________ is basically a contract for the payment of money.
Problem 11. If an instrument is negotiable in nature such as a note or certificate of deposit, it must contain a(n) _____________.
Problem 12. A promise or order is "payable on demand" if (1)____________ OR (2) _____________.
Problem 13. Under Revised Article 3, ___________ is the transfer of possession, either voluntarily or involuntarily, of a negotiable instrument by a person, other than the issuer, to another person who becomes its holder.
Problem 14. Claims and defenses to the payment of an instrument that go to the validity of the instrument are called _________.
Problem 15. The ________ of a draft is obligated to pay the draft at the time of its acceptance.
Problem 16. __________ of an instrument is an unauthorized assumption and exercise of control over it.
Problem 17. A check on which the bank is both the drawer and drawee is a ___________.
Problem 18. The Federal Reserve operates a domestic wire transfer system known as __________.
Problem 19. An agency relationship may terminate by operation of law which usually involves one of two types of underlying situations. Describe those two situations.
Problem 20. I, John Smith, promise to pay to the ORDER of Jane Doe, the sum of $1,000.00 on or before 90 days from today's date with interest at the rate of 10%. /s/ John Smith Dated this 18th day of August 2009.
Assume the above is a promissory note.
A. Who is the maker of the note?
B. Who is the payee?
Problem 21. Assume that the above figure represents a draft.
A. What kind of draft is it?
B. Who is the payee on the draft?
C. Who is the drawer on the draft?
D. Who is the drawee on the draft?
Problem 22. A check that is presented for payment more than six months after it has been issued is called a _________.
Problem 23. ___________ authorizes banks to transform information they receive in electronic form back into a paper copy of the check.