BSAD 324 exam 2|76 Questions with Verified Answers,100% CORRECT, Exams of Nursing

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BSAD 324 exam 2|76 Questions with Verified Answers

Tony writes a check to purchase jewelry. He writes the numerical figure $250. in the small box on the right-hand side of the check. Then, in clear handwriting, he writes out the figure, "two hundred and seventy dollars and no cents." What is Tony liable for? - CORRECT ANSWER 270. Sergio gets a haircut from Amelia and writes a check to pay for it. In this transaction, the drawee is: - CORRECT ANSWER the bank on which the check is drawn because it must pay the check. Laura postdates a check to Andrew for $1,000 and fails to tell her bank to wait until the date to charge her account. If Andrew presents the check to the bank, then: - CORRECT ANSWER the bank can charge the $1,000 to Laura's account. Xavier paints on the side of a wall, "I promise to pay $11,250 to the order of Franklin." Under the Uniform Commercial Code, the note is: - CORRECT ANSWER invalid because of its lack of portability. Kevin writes a check to Nancy for $41,000, but decides to notate on the check that it is "nonnegotiable." Is the check negotiable? - CORRECT ANSWER Yes, a check is negotiable even if there is a notation on it stating that it is nonnegotiable. Claude creates and signs a promissory note. He promises to pay Audrey 1, euros plus $500-worth of custom made shirts on October 15, in exchange for Audrey's help in renovating his kitchen. The note is: - CORRECT ANSWER nonnegotiable because it calls for payment in shirts. Marie wants to purchase a pool table from her friend Gilbert. She does not have cash, and when she attempts to write him a check she realizes she has run out of checks. She finds a piece of paper and writes, "I owe Gilbert $900 for the pool table I am buying today, June 29." In order to make Marie's I.O.U. a negotiable instrument, she may add any of the following phrases to the note EXCEPT: - CORRECT ANSWER. "I hope to pay on June 30."

Marcy writes a check to Randy for $5,500 to repay a loan. Randy told Marcy to pay him anytime she likes. Marcy forgets to write a date on the instrument. Does the lack of a date invalidate its negotiability? - CORRECT ANSWER No, unless the date of an instrument is necessary to determine a definite time for payment. Aurora needs to have her car's radiator replaced. She takes it to José, who makes the necessary repair. Aurora writes him a check to pay for the work. In this transaction, presentment occurs when: - CORRECT ANSWER Jose presents the check to Aurora's bank. Li agrees to buy Amber's ranch. They draw up a note under which Li is to pay Amber in three installments, each payable on a specified date. Amber has concerns about Li's ability to pay on time so she insists that the note include an acceleration clause. Such a clause would allow Amber to: - CORRECT ANSWER demand payment of the entire amount Li owes her if a certain event occurs. Cheryl signs a note for $1,000, payable in thirty days to Toby in exchange for a case of shoes. A day later, Toby signs the note over to Taylor, who pays him $ that day. Cheryl discovers that the shoes are defective and wants to withhold payment on the note to Toby. At the end of the thirty days, Taylor presents the note to Cheryl, seeking payment. As a holder in due course (HDC), Taylor: - CORRECT ANSWER has received a higher level of immunity than an ordinary holder in regard to Cheryl's claim against payment on the note. Ken writes a check payable to "Deborah or Kelsey." On this instrument, Deborah and Kelsey are: - CORRECT ANSWER payees in the alternative. Joanne does not qualify as a holder in due course (HDC) but takes possession of a promissory note through Madison, who is an HDC. Joanne can acquire the rights and privileges of an HDC through which of the following: - CORRECT ANSWER the shelter principle. Lloyd indorses a check, "Pay to Erin, without recourse, [signed] Lloyd." The legal effect this indorsement has on Lloyd is: - CORRECT ANSWER that Lloyd is relieved of all liability on the check.

Mario makes a check payable to "cash," intending to withdraw money from his bank. Kirby takes the check from Mario's notebook and gives it to Nathan in payment for a debt, telling him it is a good check. Who has rights to the check? - CORRECT ANSWER Nathan Carlisle writes a check payable to Michaela. Michaela indorses the check, "Pay to Barbara, providing that she completes the remainder of her book manuscript." Michaela has created: - CORRECT ANSWER a conditional indorsement. Julian receives a promissory note from his grandmother as a birthday present. Is Julian a holder in due course (HDC) with respect to the note? - CORRECT ANSWER No, because the note was a gift. Jill indorses a check, "Pay to Samuel, as agent for Tess." Tess is Jill's daughter. Jill has created: - CORRECT ANSWER a trust indorsement. Ursula's wealthy uncle gives her a promissory note in exchange for her promise to work as his personal lawyer if she finishes law school in two and one half years. Is Ursula a holder in due course (HDC)? - CORRECT ANSWER No, because she has not taken the instrument for value First Union Bank refuses to pay funds to James for a check written by Eli, due to insufficient funds. James assigns the check to Jennie for payment of a debt he owes her. When Jennie presents the check for payment to her bank it is returned for insufficient funds. In this situation: - CORRECT ANSWER Jennie is a holder in due course. Sam owes Nell $1,000. She forges her name on Julie's check and gives it to Nell, explaining to Nell that Julie owed her $1,000. Nell wants to buy Milo's computer and indorses the check in blank and gives it to Milo in exchange for his computer. Milo uses the check as a down payment for a car and transfers the check (without indorsement) to Chad. Chad presents the check to the bank for payment and the forgery is discovered. Who can Chad hold liable? - CORRECT ANSWER Milo Arden breaks into Johnson's house. She steals a check, makes it out for $20, payable to her husband Armando, and signs it "Arden, as agent for Johnson."

Armando cashes the check at Johnson's bank. Johnson is liable for: - CORRECT ANSWER nothing. Melissa is a holder in due course of a promissory note and makes a demand for payment to Will. Which of the following defenses may NOT be raised by Will as a valid defense against an HDC? - CORRECT ANSWER breach of contract Ted, Billie's agent, has authority to sign notes on Billie's behalf. Ted signs a promissory note promising to pay Carmen $12,000 in three months using the signature "Ted, as agent for Billie." Is Billie liable for the $12,000? - CORRECT ANSWER Yes, because Ted clearly signed as Billie's agent, and therefore Billie is liable. Jamie, Jamaal's friend, breaks into his locked desk, steals a blank check, and fills it out for $50,000, payable to "CASH." Jamie signs Jamaal's name and presents the check to Jamaal's bank for payment. The bank cashes the check, and Jamie leaves for Brazil. The liable party is: - CORRECT ANSWER the bank, because it had a duty to verify the signature. Alton is an actor who has homes in Los Angeles and New York. He hires Jamie to be his agent in New York. In managing his affairs, Jamie signs negotiable instruments. Usually, she signs them "Jamie, as agent for Alton." One day, she writes a check to the janitorial service for cleaning Alton's apartment but just signs it "Jamie." With respect to the check to the janitorial service, Alton is: - CORRECT ANSWER liable, but only if Jamie can prove that Alton and the payee, the janitorial service, did not intend for Jamie to be liable on the instrument. Taylor is primarily liable on a promissory note. Because of this, she: - CORRECT ANSWER is required to pay, unless she has a valid defense to payment. Shelton has made his final payment on a promissory note to Alex. Shelton, as a party to a negotiable instrument, will be discharged by: - CORRECT ANSWER payment. Lance writes Martin a check drawn on Lincoln Bank. Martin presents the check for payment at Lincoln Bank in a timely and proper manner. Lincoln refuses to pay. As a legal matter: - CORRECT ANSWER Lincoln has dishonored the check.

Willard owes Karen $50,000. Willard steals a check from Meghan and makes it out for $50,000, payable to Lester. He then indorses it, "Pay to the order of Karen, [signed] Lester." Willard then gives the check to Karen. Karen deposits the check into her account and Meghan's bank pays the check. In this situation, the loss is borne by: - CORRECT ANSWER Karen Jennie signs a written instrument giving the bank a property interest in her car to secure a loan she has signed. This instrument is known as: - CORRECT ANSWER a security agreement Monica defaults on her business line of credit with First American Bank, for which she used a business vehicle as security. First American Bank obtains possession of the vehicle and: - CORRECT ANSWER may do any of these. Joey obtains a loan through First American Bank for farm equipment and signs a security agreement. He takes out a second loan through Second American Bank and signs a security agreement using the same equipment as collateral. Second American Bank files a financing statement. Joey borrows money from Clyde and signs a promissory note. Who has priority in the farm equipment? - CORRECT ANSWER Second American Bank Amanda owns a business with $1.5 million worth of equipment. She needs cash, so on September 15 she opens a $750,000 line of credit with Eighth Avenue Bank using the equipment as collateral. She draws $40,000 on the line of credit. The bank properly perfects the security agreement. On November 10, Amanda takes another $15,000 from the bank. The bank: - CORRECT ANSWER has a perfected security interest for $55,000 which was perfected on September 15. Michael signs a promissory note and a security agreement with U.S. First Bank for a line of credit with his business inventory as collateral. U.S. First perfects its interest. Michael then buys a truck for use in his business and he finances the purchase through U.S. Second Bank, which perfects its security interest. In the event of default, who has priority in the truck? - CORRECT ANSWER U.S. Second Bank

Joshua and Samantha borrow $25,000 from Zachary, using their boat as collateral for the loan. Zachary properly perfects his security interest. When Joshua and Samantha default on the loan, the boat is worth $15,000, but Zachary believes that the market will rebound and the value of the boat will go back up. Zachary: - CORRECT ANSWER may retain the boat in full satisfaction of the debt so long as he gives notice to the proper parties and there are no objections. Abigail borrows $14,000 from Daniel, using her family jewelry collection as collateral. Daniel properly perfects the security interest. When Abigail defaults on the loan, Daniel demands that she give him the jewelry. Abigail refuses. Daniel: - CORRECT ANSWER can ask a court to order her to give him the collection. John takes out a loan from First Mutual Bank. As collateral, he uses the inventory of his business. After six weeks, the inventory that was in his warehouse when he signed the loan papers has all been sold and replaced with new inventory. In order for First Mutual to have any claim on that new inventory, the loan documents should have: - CORRECT ANSWER an after-acquired property clause Javier buys a large 3D flat screen TV from West Coast Sales, which agrees to lend him eighty-five percent of the purchase price. Their agreement is known as a: - CORRECT ANSWER purchase-money security interest (PMSI). Mary has a security interest in a black velvet painting that Paolo owns so, with his permission, she takes the painting and stores it in her garage. Mary: - CORRECT ANSWER has a security interest that is perfected. Stewart grants Julie a security interest in 500 shares of stock in his company in exchange for a loan. Stewart makes his loan payments on time, and his business is growing and successful. When the loan is nearly repaid, Stewart is in a car accident and is unable to work for a few months. He could sell his company were it not encumbered by Julie's security interest. Julie: - CORRECT ANSWER may release her interest in the stock by filing an amendment. Margo buys a refrigerator, a consumer good, from the Appliance Depot. She makes a down payment, and she and the store create a purchase-money security interest (PMSI) in the refrigerator so that she can pay it off over time. For

Appliance Depot to have the PMSI perfected, it must: - CORRECT ANSWER do nothing, as PMSIs are automatically perfected. Ted wants to start a candy shop and needs money. He talks with Quincy and Gillian separately, and each agrees to loan funds to Ted. The two do not know that the other is loaning him money. He gives each a security interest in the business. Each has filed a financing statement with the proper agency. When Ted fails to make payments and Quincy and Gillian both seek to sell the shop in order to be paid, the one who has first priority is the one who: - CORRECT ANSWER filed first. Gil loans Larson the money to buy a new ski boat. They agree that Gil will have a security interest in the boat until Larson repays the loan. Under Article 9 of the UCC, they need to file a financing statement: - CORRECT ANSWER under the name of Larson. Logan borrows money from Third Street Bank. To ensure repayment, the bank makes Logan sign a statement that if he fails to pay back the loan, the bank has a right to take his family art collection, which is worth approximately the same amount as the loan. The art collection is called: - CORRECT ANSWER collateral Marguerite wants to borrow cash from Jimmy. She offers him a security interest in her neighbor's diamond ring, which she has been told that she or her sister will receive after their neighbor passes away. Regarding Marguerite's proposal, which of the following statements is true? - CORRECT ANSWER Jimmy cannot take a security interest in the ring because Marguerite does not have legal rights to it. Robert attempts to avoid paying Andrew a commission on the sale of his house to a buyer procured by Andrew. He does so by waiting until after the listing agreement has expired. Andrew finds out about this after Robert sells his house. Andrew can: - CORRECT ANSWER sue Robert for breach of contract. Judy's cousin Skip tells Judy that he will sell her car for her when she leaves the country for a church mission for two years. Skip tells her that he will do it for no charge to her. While Judy is gone, Skip forgets about the agreement and does not attempt to sell the car. Judy: - CORRECT ANSWER cannot recover anything from Skip because he had no duty to perform since he was a gratuitous agent.

Eli and Marilyn ask Gracie to be the administrator of their will and the guardian of their children if they pass away before their children reach the age of majority. Gracie agrees. Fiduciary relationships such as this one: - CORRECT ANSWER involve a high degree of trust and confidence. Dara gives her agent, Marla, money to purchase a new commercial oven. Marla takes the money and deposits it into her personal checking account. Marla then accidentally spends some of Dara's money. Marla has violated her duty of: - CORRECT ANSWER accounting. Justin, as an agent for Jessica, receives an earnest money check from a buyer related to the sale of Jessica's property. Justin's receipt of the check creates a(n): - CORRECT ANSWER constructive trust. Sarah has to move from the East Coast to the West Coast for her job. Elmo agrees to act as Sarah's agent to sell her New York condo. As her agent, Elmo owes Sarah all of the following duties except: - CORRECT ANSWER payment. Mitchell hires Christina to go from Florida to New York and negotiate a contract for his company. He gives her specific instructions on what should be in the contract, and a written letter that gives her authority to sign on his behalf. Christina books a plane ticket, flies to New York, hires a cab, and successfully negotiates the contract. If Christina is paid for the plane ticket and cab fare, as well as meals while in New York, it is most likely under the principal's duty of: - CORRECT ANSWER reimbursement. Cheryl knows that Jake is looking to buy a new scooter. She sees one that would be perfect and negotiates with the seller on Jake's behalf. She signs a contract for the scooter using her name but clearly indicating that she is working for Jake. She actually is not. When Jake sees the scooter, he loves it and agrees to pay the contract price. If agency exists in this situation, it is agency by: - CORRECT ANSWER ratification. Charlie tells Jamal that Marisol has agreed to allow him to sell her racing bicycle. Marisol is present at the time, hears the conversation and says nothing. Jamal agrees with Charlie to buy Marisol's bike. Marisol then refuses to sell the bicycle.

Marisol claims that she is not bound by the agreement formed by Charlie and Jamal because Charlie is not her agent. Marisol likely is: - CORRECT ANSWER bound by the contract under a theory of agency by estoppel. Laura and Juan have an agreement where Laura will sell Juan's baseball card collection while he is out of the country. Juan does not give any specific instructions on how this should be done. To fulfill her duty of obedience, Laura must: - CORRECT ANSWER act in good faith. Kris represents Josh in the sale of his house as his real estate agent. Kris is entitled to: - CORRECT ANSWER compensation. Whitney works at home making unique children's clothes. Liam buys Whitney's clothes to sell in his store. With respect to Whitney's legal relationship to Liam, she is probably: - CORRECT ANSWER an independent contractor. Napoleon owns Napoleon's Construction and agrees to renovate Mrs. Cernan's bathroom. She will provide him with the plans, and then he will do the work in the manner that he determines is most cost effective and appropriate. Napoleon is likely to be classified as: - CORRECT ANSWER an independent contractor. Jamel hires independent contractor Stevenson to create users' manuals for Jamel's small appliances. Jamel: - CORRECT ANSWER can create an agreement in writing that designates Stevenson's work as work for hire. Sam goes out shopping and, using his wife Juanita's credit card, buys $221 worth of groceries. Under agency law, Juanita will probably be deemed: - CORRECT ANSWER liable for the purchase, based on the creation of an agency by operation of law. Selma, an elderly widow, gives her young neighbor Steven written power of attorney. This means that Steven now: - CORRECT ANSWER has express authority to act as Selma's agent. Lizzie works for Gary in his dance supply shop and is authorized to sell inventory but not to order new merchandise. Rena, a sales representative for a new line of dance wear, comes into the store and Lizzie places an order with her. When Gary

learns the details of Lizzie's purchase he wants to ratify the contract. The one condition that is NOT necessary for ratification is: - CORRECT ANSWER Rena must withdraw from the transaction before Gary ratifies it. Selena signs a power of attorney appointing Kim, for the sole purpose of signing paperwork on her behalf that relates to the sale of her house. The power of attorney will automatically terminate based on: - CORRECT ANSWER the purpose being achieved. Sarah asks Sergio to mow her lawn. Sergio, who is overloaded with work, contracts with Dan to do the work for him as an independent contractor. As Dan is mowing, Sarah walks out of her house and the lawnmower throws a rock and hits Sarah, causing serious injuries. In this situation, Sergio is: - CORRECT ANSWER probably not liable for Sarah's injuries. Dean is not Paul's agent, but Paul tells Charlie that Dean has always been a good friend and can "handle any of my business affairs." If Dean were to later enter into a contract with Charlie on Paul's behalf, Dean would be acting under an: - CORRECT ANSWER apparent authority. Gina buys a piece of pottery from Woodward for her principal, Kelvin. If Woodward knows that Gina is buying the pottery on behalf of someone other than herself but does not know the identity of that person, Kelvin is: - CORRECT ANSWER a partially disclosed principal. Patricia hires Albert to sell Patricia's expensive sports car. Albert agrees on a sale with Zeke, who wants to purchase the car for its powerful engine and well-kept condition. Albert does not disclose Patricia's identity to Zeke. Albert also does not disclose the fact that Albert is an agent for someone else. Zeke tenders the purchase price to Albert, but Patricia refuses to deliver the car as agreed. In this situation: - CORRECT ANSWER Patricia is bound to perform. Yakov hires Melina to be his Vice President for Marketing. The job description is pretty broad but does not include the ability to hire or terminate lower level employees in the Marketing division. If Melina has this power, it is based on her: - CORRECT ANSWER implied authority.

Kim hires Michelle to go to the art gallery and purchase a specific painting for him. The painting costs $1,500. Because this is the purchase and sale of goods for more than $500, the contract for the painting must be in writing. In order to have a legal purchase of the painting, Kim: - CORRECT ANSWER may have Michelle sign on his behalf if the agency agreement is in writing. Donald is a new financial analyst for a large stock-brokerage company. On the way to work, Donald collides with Yolanda, injuring her. Donald would normally be considered to be acting: - CORRECT ANSWER outside the scope of employment. Francis drives a delivery truck for Weston Industries. In the middle of his delivery route, Francis stops to have a two-hour lunch with friends twenty miles away. While in the restaurant, Francis spills some water and another person falls on it. That person sues Weston Industries. To determine liability, a court would likely decide that Francis was acting: - CORRECT ANSWER outside the scope of employment Jason instructs his agent Miguel to obtain a piece of artwork from Martina by threatening to beat her if she refuses to sell the artwork. Miguel follows Jason's instruction and beats Martina when she refuses to sell the item. In this situation: - CORRECT ANSWER both Jason and Miguel are liable for Martina's injuries. Ernest signs a listing agreement with Lisa to sell his house. Before Lisa finds a buyer, the house is destroyed by flooding. In this case, the agency agreement between Ernest and Lisa: - CORRECT ANSWER terminates based on impossibility. Samantha borrows $10,000 from John to start her business. She gives John her stock in AT&T, authorizing him to sell it if she defaults on her loan. If she later attempts to terminate his authority to sell the stock, she will not be successful because she gave John an agency: - CORRECT ANSWER coupled with an interest. Maureen knows that her friend Kramer collects duck memorabilia. One day, she spots a carved wooden duck she is sure he will love. She tells the shop owner that Kramer will pay her for the duck as soon as he sees it, and she takes the duck with her to show it to Kramer. Kramer is: - CORRECT ANSWER not liable