Lindsay
ReSA
The Review School of Accountancy
Tel. No. 735-9807 & 734-3989
BUSINESS LAW Atty. Marcelino S. Bonafe Jr.
QUIZ- NEGOTIABLE INSTRUMENTS LAW (PART II)
MULTIPLE CHOICE 1. A negotiable instrument must contain a promise or order to pay a sum certain in money, except a) Which must be payable to order or bearer b) That must be in writing c) Which must be an unconditional promise or order d) The payee must be identified 2. The following are the functions of a negotiable instruments, EXCEPT: a) It operates as a substitute for money. b) It is a means of creating and transferring of credits. c) It facilitates the sale of goods and increases the purchasing medium in circulation. d) It is legal tender 3. An instrument is payable to bearer except: a) The only and last endorsement is in blank. b) Payable to ”CASH” c) It is payable to a specified person or bearer. d) Payable to the order of the bearer. 4. An instrument that is payable to specified person or entity is… a) Negotiable because it complies with Section 1 of the law b) Not negotiable because it must be a payable to order or bearer. c) Negotiable because a specified person is a payee or bearer. d) Not negotiable because the payee is named. 5. A. An incomplete and already delivered instrument, if completed, and is negotiated to a holder in due course, is valid and effectual for all purposes in his hands.
B. Such holder may enforce it as if it had been filled up strictly in accordance with the authority given and within a reasonable time. a) Both statements are true b) First statement is false; second statement is true c) Both statements are false d) First statement is true; second statement is false 6. Where an incomplete instrument has not been delivered, it will not, if completed and negotiated without authority, be a valid contract as against any person whose signature was placed thereon
The Review School of Accountancy
Tel. No. 735-9807 & 734-3989
BUSINESS LAW Atty. Marcelino S. Bonafe Jr.
QUIZ- NEGOTIABLE INSTRUMENTS LAW (PART II)
MULTIPLE CHOICE 1. A negotiable instrument must contain a promise or order to pay a sum certain in money, except a) Which must be payable to order or bearer b) That must be in writing c) Which must be an unconditional promise or order d) The payee must be identified 2. The following are the functions of a negotiable instruments, EXCEPT: a) It operates as a substitute for money. b) It is a means of creating and transferring of credits. c) It facilitates the sale of goods and increases the purchasing medium in circulation. d) It is legal tender 3. An instrument is payable to bearer except: a) The only and last endorsement is in blank. b) Payable to ”CASH” c) It is payable to a specified person or bearer. d) Payable to the order of the bearer. 4. An instrument that is payable to specified person or entity is… a) Negotiable because it complies with Section 1 of the law b) Not negotiable because it must be a payable to order or bearer. c) Negotiable because a specified person is a payee or bearer. d) Not negotiable because the payee is named. 5. A. An incomplete and already delivered instrument, if completed, and is negotiated to a holder in due course, is valid and effectual for all purposes in his hands.
B. Such holder may enforce it as if it had been filled up strictly in accordance with the authority given and within a reasonable time. a) Both statements are true b) First statement is false; second statement is true c) Both statements are false d) First statement is true; second statement is false 6. Where an incomplete instrument has not been delivered, it will not, if completed and negotiated without authority, be a valid contract as against any person whose signature was placed thereon