11
Motor Sales Inc. signs an instrument that promises to pay National Parts Company a certain price, with interest, for a shipment of auto parts. It is necessary to know when the instrument is due in order to
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a. know when the interest will accrue. |
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c. determine the value of the instrument. |
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d. calculate when a statute of limitations may apply. |
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12 To operate practically as a substitute for cash or a credit device, a negotiable instrument must be
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a.
conditional without the risk of being collectable.
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b.
qualified with a promise to set aside the qualification.
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c.
payable without recourse.
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d.
transferable without the danger of being uncollectable
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Sport Souvenir LLC orders a gross of printed shirts from T-Shirt Company. To finance the purchase, the buyer signs a note to pay the seller from the funds paid to the buyer on the sale of the shirts at a certain event. This note is nonnegotiable because
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a.
the instrument does not contain an express promise to pay.
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b.
payment is to be made from a fund that does not yet exist.
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c.
the note is not a three-party instrument, such as a draft.
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d.
the note appears not to state a rate of interest.
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