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BLAW I
Final
23
Business
Undergraduate 3
05/06/2013

Additional Business Flashcards

 


 

Cards

Term
4 Negotiable instruments covered by UCC
Definition
Drafts, checks, CD's and Promissory Note
Term
Classified as orders to pay
Definition
drafts, checks, CD's
Term
Who has Primary liability?
Definition
makers (Drawee) of notes and cd's and ACCEPTORS of checks and drafts
Term
Who has Secondary liability?
Definition
drawers of drafts and checks; unqualified indorsers
Term
2 Elements of a N/I
Definition
1.Underlying K
2.Holder in due course
Term
7 Personal defenses
Definition
1.failure
2.breach of warranty
3.Fraud
4.Mistake
5.Set-off
6.Undue influence
7.Most duress
Term
4 Real defenses
Definition
1.fraud in the inception
2.illegality
3.Capacity issues
4.Extreme duress
Term
What is the prevailing body of law when a P/N is used?
Definition
the law of N/I
Term
What section of the UCC covers qualifications of a HDC?
Definition
Sec. 3-302(a)
Term
What section of the UCC covers the shelter provision?
Definition
Sec. 3-203(b)
Term
What qualifies a HDC?
Definition
1.Pay value
2.taken instrument in good faith
3.Has to be without notice of any defense against the instrument
Term
What defenses are HDCs immune to that Assignees are not?
Definition
PERSONAL
Term
5 Requirements for Negotiability:
Definition
1.In writing and signed
2.Unconditional promise or order
3. Sum certain in money and no other requirement for discharge
4.Payable on demand or at the definite time
5.Payable to order to the bearer
Term
3 Negotiation Instruments
Definition
1.Bearer paper
2.Order paper
3. endorsements
Term
5 types of endorsements:
Definition
1.Blank
2.Special
3.Restrictive
4.Unqualified
5.Qualified
Term
Blank endorsement
Definition
accepts without strings
Term
Special endorsement
Definition
has to have an endorsement
Term
Restrictive
Definition
limits negotiations
Term
Unqualified endorsement
Definition
an endorsement that is NOT qualified
Term
Qualified endorsement
Definition
relieves transferor of secondary liability
Term
Attachment of a security instrument occurs when?
Definition
either at the K's conception or when the debtor has an interest in the collateral
Term
Perfection of a security instrument occurs when?
Definition
once the financing statement has been signed or once the collateral is received by the creditor
Term
Characteristics of the Financing Statement:
Definition
UCC-1
Creditor is the Secure party
filed as public record
debtor is on constructive notice
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