Restrictive indorsement does not destroy negotiability

Question

Assignment:

QUESTION 1 A restrictive indorsement does not destroy negotiability.

True

False

QUESTION 2 Negotiating order instruments requires either delivery or indorsement but not both.

True

False

QUESTION 3 A holder cannot become an HDC if he or she has no­tice of any claim to the instrument or defense against it.

True

False

QUESTION 4 An indorsement is a signature, with or without additional words or statements.

True

False

QUESTION 5 An instrument is dishonored when the party to whom the instrument is presented refuses to pay it.

True

False

QUESTION 6 A holder takes an instrument for value if he or she inherits an instrument.

True

False

QUESTION 7 An instrument payable to two or more persons in the alternative requires the indorsement of both payees for negotiation.

True

False

QUESTION 8 An indorsement should be identical to the name of the indorsee, regardless of how the name appears on the instrument.

True

False

QUESTION 9 A holder takes an instrument for value if he or she accepts the instru­ment in payment of a preexisting obligation.

True

False

QUESTION 10 There are no limitations on the shelter principle.

True

False

QUESTION 11 The shelter principle extends the benefits of HDC status and is designed to aid the HDC in readily disposing of the instrument.

True

False

QUESTION 12 A holder takes an instrument for value by promising to perform or give value in the future.

True

False

QUESTION 13 A blank indorsement can consist of a mere signature.

True

False

QUESTION 14 To avoid the risk of loss from theft, a holder may convert a blank indorsement to a special indorsement.

True

False

QUESTION 15 Often, whether a holder will be able to obtain payment on an instrument will depend on whether he or she is a holder in due course.

True

False

QUESTION 16 For a check, a "reasonable time" is ninety days after the date of the check.

True

False

QUESTION 17 A purchaser can become an HDC of an instrument even if it is so incomplete that an element of negotiability is lacking.

True

False

QUESTION 18 A transfer by assignment can make it possible for a transferee to receive more rights in the instrument than the prior possessor had.

True

False

QUESTION 19 A person who takes a negotiable instrument from a thief cannot become an HDC even if he or she acted honestly in the process of acquiring the instrument.

True

False

QUESTION 20 Usually, indorsements are qualified indorsements.

True

False