Exam 2 for ACC 440

Exams
Review Test Submission: Exam 2 SKIP TO COURSE MENUSKIP TO TOP FRAME TABS
Content
User
Justin Osborne
Course
ACC 440 Legal Aspects of Accounting, Spring 14, 23707
Test
Exam 2
Started
2/25/14 9:31 PM
Submitted
2/25/14 10:30 PM
Status
Completed
Attempt Score
64 out of 100 points
Time Elapsed
58 minutes out of 1 hour.
Instructions
No Printing! <script lang=”Javascript” src=”h ttp://www.eku.edu/onlinelearning/np.js”></script>
Question 1
4 out of 4 points

Maria holds an instrument that states "I wish you would pay". Maria's instrument is negotiable.
Answer

Selected Answer: False
Correct Answer: False

Question 2
0 out of 4 points

Kate holds an instrument as a holder in due course (HDC). The UCC requires that a HDC take an instrument in good faith. This means that
Answer

Selected Answer: d.
Kate must be assured in wirting that the instrument has no defects.
Correct Answer: c.
Kate must have acted honestly and observed all reasonable commercial standards of fair dealing.

Question 3
4 out of 4 points

Thomas inherits a promissory note previously held by his deceased grandfather. Thomas has no notice that the note has been dishonored or is overdue. Thomas has the rights of
Answer

Selected Answer: c. a holder only.
Correct Answer: c. a holder only.

Question 4
4 out of 4 points

Jason, Inc. manufactures chain saws. Margie is injured while using a chain saw manufactured by Jason, Inc. and sues the company for product liability based on negligence. To win, Margie must show that
Answer

Selected Answer: a.
Jason, Inc. did not use due care with respect to the chain saw.
Correct Answer: a.
Jason, Inc. did not use due care with respect to the chain saw.

Question 5
4 out of 4 points

One universal defense to liability for payment on a negotiable instrument is
Answer

Selected Answer: a. forgery Correct Answer: a. forgery Question 6
4 out of 4 points

Kennedy buys a new pink scooter. Kennedy reads