Question 1: Medic Equip, Inc., manufactures medical devices. Tom is injured while using a Medic pacemaker and sues Medic for product liability based on strict liability. To win, Tom must show that
a. he was in privity of contract with Medic.
b. Medic did not use due care with respect to the pacemaker.
c. Medic misrepresented a material fact regarding the pacemaker, on which Tom relied.
d. none of the above.
Question 2: Sue signs an instrument using an "S" with a circle around it. With this mark for a signature, the instrument is
a. negotiable.
b. nonnegotiable, because an initial does not constitute an authorized
signature.
c. nonnegotiable, because the nature of the signature raises the presumption that Sue did not intend for it to be binding.
d. nonnegotiable, because a signature must be in full to completely identify the party whose name it represents.
Question 3: On May 1, Doug signs a check that is payable to the order of Eagle Credit Card Corporation and that is dated July 1. This check is
a. negotiable.
b. nonnegotiable, because it is payable to Eagle Credit Card Corporation.
c. nonnegotiable, because it is postdated.
d. nonnegotiable, because it is signed by Doug.
Question 4: Selena will not attain the status of an HDC if she knew or should have known when she acquired a negotiable instrument that it
a. was overdue.
b. had been dishonored.
c. was subject to competing claims.
d. any of the above.