7.Bogart presents a sight draft to Commerce Bank for payment. A bank employee writes accepted across the face of the instrument, and adds the date and the bank’s signature. The draft is
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a.
payable ninety days after sight.
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b.
acknowledged as received, but not payable without further verification.
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c.
payable immediately or within a stated time after sight.
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d.
accepted and will be payable by the close of the next business day
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9. Steel Mill Inc. signs an instrument that states with certainty a fixed amount to be paid at the time the instrument is payable. This ensures that
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a.
the amount payable can fluctuate as a result of market conditions.
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b.
interest may be payable at a fixed or variable rate.
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c.
the amount may be determined by information not in the instrument.
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d.
the value of the instrument can be determined with clarity.
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10Direct Connect Company orders a quantity of wire from Electric Supply Inc. To finance the purchase, Direct signs a note that includes a reference to the parties’ contract, a payment schedule, and a security agreement. This note is
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b.
nonnegotiable, because it refers to a security agreement.
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c.
nonnegotiable, because it refers to the parties’ contract.
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d.
nonnegotiable, because it refers to a payment schedule.
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