1. a. What is the difference between lost and abandoned property? (at least 2 sentences) b. If you found a paper sack full of dollar bills, would you rather it be designated as lost or abandoned property? c. Why? (at least 2 sentences)
a. Lost property is unintentionally left by someone. For example, leaving your purse in a buggie at the store. Abandoned property is purposefully discarded with no intention of getting it back. Like if someone dropped a puppy on the side of the road. b. If I found a paper sack full of money, I would want it to be considered abandoned property. Rights from property that was abandoned can be acquired by someone else, while lost property rights cannot.
2. a. What is the difference between order and bearer paper? (2-3 sentences) b. Which type of instrument would you rather have, order or bearer paper? (at least 2 sentences)
a. Order paper is commercial paper made to the order of a named person. Bearer paper can be used by anyone. b. I would rather have bearer paper. I can do more thing with bearer paper such as cash it or put it in my bank account.
3. What are the seven requirements for a negotiable writing? 1. The instrument must be in writing and signed by the party executing it. 2. The instrument must contain either an order to pay or a promise to pay. 3. The order or the promise must be unconditional.
4. The instrument must provide for the payment of a fixed amount of money. 5. The instrument must be payable either on demand or at a fixed or definite time. 6. The instrument must be payable to the order of a payee or to bearer. 7. The payee and the drawee must be designated with reasonable certainty.
4. a. What is the difference between a check and a time draft? (at least 2 sentences) b. Why would you pay with a time draft? (at least 2 sentences)
a. Checks are payable on demand. Time draft is payable only after a specified number of days or...
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