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1
Under Revised Article 3 of the UCC, "negotiation" refers to the determination of terms under negotiable instrument.
A)True
B)False
2
In order to constitute an indorsement, a signature must be written by the holder himself.
A)True
B)False
3
An indorser who merely signs his name and does not specify to whom the instrument is payable has indorsed the instrument "in blank."
A)True
B)False
4
A "holder in due course" gets only the rights in the instrument that are held by the person from whom he got the instrument.
A)True
B)False
5
A person who obtains the negotiable instrument through trickery can still qualify as a "holder in due course."
A)True
B)False
6
A holder who has notice that an instrument contains an unauthorized signature or has been altered cannot qualify as a holder in due course.
A)True
B)False
7
A holder may still be a "holder in due course" even if the holder did not give value for the negotiable instrument.
A)True
B)False
8
Some state legislatures have limited the holder in due course rule, particularly as it affects consumers.
A)True
B)False
9
Which of the following are defenses against payment of a negotiable instrument to any holder?
A)Debt was discharged in bankruptcy.
B)The instrument was made under duress.
C)Illegality of obligation.
D)all of the above
10
Joe is an illiterate person who lives alone. He signs a document that is a promissory note but is told that by signing the form he will receive a valuable prize. Bob is the holder in due course of that promissory note. Joe:
A)unfortunately has no defense against payment of the note to Bob.
B)has a defense against payment of the note to Bob.
C)must declare bankruptcy in order to escape liability on the promissory note.
D)A and C





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