Uop acc 543 week 4 exam new syllabus

UOP ACC 543 Week 4 Exam New Syllabus
To purchase this material click
http://www.assignmentcloud.com/acc-543-
uop/acc-543-week-4-exam
For more classes visit
www.assignmentcloud.com
On February 15, 1993, P.D. Stone obtained the
following instrument from Astor Co. for
$1,000.Stone was aware that Helco, Inc., disputed
liability under the instrument because of an
alleged breach by Astor of the referenced
computer purchase agreement. On March 1, 1993,
Willard Bank obtained the instrument from Stone
for $3,900. Willard had no knowledge that Helco
disputed liability under the instrument.The
reverse side of the instrument is indorsed as
follows:The instrument is
Under the Negotiable Instruments Article of the
UCC, an instrument will be precluded from being
negotiable if the instrument

Which of the following negotiable instruments is
subject to the UCC Negotiable Instruments Article?
following instrument from Astor Co. for $1,000.
Stone was aware that Helco, Inc. disputed liability
under the instrument because of an alleged breach
by Astor of the referenced computer purchase
agreement. On March 1, 1993, Willard Bank
obtained the instrument from Stone for $3,900.
Willard had no knowledge that Helco disputed
liability under the instrument.The reverse side of
the instrument is indorsed as follows:The
instrument is a
Which of the following negotiable instruments is
subject to the provisions of the UCC Negotiable
Instruments Article?
Below is a copy of a note Prestige Properties
obtained from Tim Hart in connection with Hart's
purchase of land located in Hunter, MT. This note
is a
Which of the following conditions, if present on an
otherwise negotiable instrument, would affect the
instrument's negotiability?

UCC, which of the following instruments is
classified as a promise to pay?
UCC, the proper party to whom a check is
presented for payment is
UCC, which of the following documents would be
considered an order to pay?
A $5,000 promissory note payable to the order of
Neptune is discounted to Bane by blank
indorsement for $4,000. King steals the note from
Bane and sells it to Ott who promises to pay King
$4,500.After paying King $3,000,Ott learns that
King stole the note. Ott makes no further payment
to King. Ott is
UCC, which of the following circumstances would
prevent a person from becoming a holder in due
course of an instrument?
UCC, which of the following requirements must be
met for a transferee of order paper to become a
holder?

Ashley needs to indorse a check that had been
indorsed by two other individuals prior to Ashley's
receipt of the check. Ashley does not want to have
surety liability, so Ashley indorses the check
"without recourse." Under the Negotiable
Instruments Article of the UCC, which of the
following types of indorsement did Ashley make?
following instrument from Astor Co. for
$1,000.Stone was aware that Helco, Inc. disputed
liability under the instrument because of an
alleged breach by Astor of the referenced
computer purchase agreement. On March 1, 1993,
Willard Bank obtained the instrument from Stone
for $3,900.Willard had no knowledge that Helco
disputed liability under the instrument.The
reverse side of the instrument is indorsed as
follows:Which of the following statements is
correct?
UCC, when an instrument is indorsed "Pay to John
Doe" and signed "Faye Smith," which of the
following statements is(are) correct?

UCC, an indorsement of an instrument "for deposit
only" is an example of what type of indorsement?
The following note was executed by Elizabeth
Quinton on April 17, 1990, and delivered to Ian
Wolf:
In sequence, beginning with Wolf's receipt of the
note, this note is properly characterized as what
type of commercial paper?
UCC, which of the indorser's liabilities are
disclaimed by a "without recourse" indorsement?
Train issued a note payable to Blake in payment of
contracted services that Blake was to perform.
Blake indorsed the note "pay to bearer" and
delivered it to Reed in satisfaction of a debt owed
Reed. Train refused to pay Reed on the note
because Blake had not yet performed the services.
UCC, must Train pay Reed?
Ball borrowed $10,000 from Link. Ball, unable to
repay the debt on its due date, fraudulently
induced Park to purchase a piece of worthless
costume jewelry for $10,000. Ball had Park write a
check for that amount naming Link as the payee.

Ball gave the check to Link in satisfaction of the
debt Ball owed Link. Unaware of Ball's fraud, Link
cashed the check. When Park discovered Ball's
fraud, Park demanded that Link repay the
$10,000. Under the Negotiable Instruments Article
of the UCC, will Link be required to repay Park?
UCC, which of the following requirements must be
met for a person to be a holder in due course of a
promissory note?
The holder must be the payee of the note.
The following indorsements appear on the back of
a negotiable promissory note payable to Lake
Corp.Which of the following statements is correct?
Jacobs gave the check to his son as a gift, who
transferred it to Anchor for $78.00. Which of the
following statements is correct?
UCC, what kind of indorsement is made by the use
of the words "Lee Louis"?
West Corp. received a check that was originally
made payable to the order of one of its customers,
Ted Burns. The following indorsement was written

on the back of the check:Which of the following
describes the indorsement?
Janice owes Jake $120,000. Jake cashes the check
45 days after receiving it. Janice's bank fails. The
FDIC will cover $100,000. Janice
Horton wrote a check for $50,000 to Wallace who
in turn indorsed it to Halbert. When Halbert
presented the check to the bank it was dishonored
because of insufficient funds. Which of the
Bart presented a negotiable demand note
supposedly signed by Alice as maker to Alice for
payment. Alice claimed the note was a forgery and
refused to pay it. Which of the following is correct?
UCC, which of the following parties has secondary
liability on an instrument?
Which of the following parties has (have) primary
liability on a negotiable instrument?
To the extent that a holder of a negotiable
promissory note is a holder in due course, the
holder takes the note free of which of the following
defenses?

Cobb gave Garson a signed check with the amount
payable left blank. Garson was to fill in, as the
amount, the price of fuel oil Garson was to deliver
to Cobb at a later date. Garson estimated the
amount at $700, but told Cobb it would be no more
than $900. Garson did not deliver the fuel oil, but
filled in the amount of $1,000 on the check. Garson
then negotiated the check to Josephs in
satisfaction of a $500 debt with the $500 balance
paid to Garson in cash. Cobb stopped payment and
Josephs is seeking to collect $1,000 from Cobb.
Cobb's maximum liability to Josephs will be
A maker of a note will have a valid defense against
a holder in due course as a result of any of the
following conditions except
following instrument from Astor Co. for $1,000.
Stone was aware that Helco, Inc., disputed liability
under the instrument because of an alleged breach
by Astor of the referenced computer purchase
agreement. On March 1, 1993, Willard Bank
obtained the instrument from Stone for $3,900.
Willard had no knowledge that Helco disputed
liability under the instrument.The reverse side of
the instrument is indorsed as follows:If Willard

Bank demands payment from Helco and Helco
refuses to pay the instrument because of Astor's
breach of the computer purchase agreement,
which of the following statements would be
correct?
Robb, a minor, executed a promissory note
payable to bearer and delivered it to Dodsen in
payment for a stereo system. Dodsen negotiated
the note for value to Mellon by delivery alone and
without indorsement. Mellon indorsed the note in
blank and negotiated it to Bloom for value.
Bloom's demand for payment was refused by Robb
because the note was executed when Robb was a
minor. Bloom gave prompt notice of Robb's default
to Dodsen and Mellon. None of the holders of the
note were aware of Robb's minority. Which of the
following parties will be liable to Bloom?
UCC, in a nonconsumertransaction, which of the
following are real defenses available against a
holder in due course?
A seller and buyer enter into an international
contract for the sale of goods involving a large
amount of money. They agree to finance the sale

by a letter of credit. Which of the following is
correct?
Which of the following statements concerning a
letter of credit is correct?
Under the Documents of Title Article of the UCC,
which of the following statements is(are) correct
regarding a common carrier's duty to deliver
goods subject to a negotiable, bearer bill of lading?
Under a nonnegotiable bill of lading, a carrier who
accepts goods for shipment must deliver the goods
to
Under the Documents of Title Article of the UCC, a
negotiable document of title is "duly negotiated"
when it is negotiated to
Burke stole several negotiable warehouse receipts
from Grove Co. The receipts were deliverable to
Grove's order. Burke indorsed Grove's name and
sold the warehouse receipts to Federated
Wholesalers, a bona fide purchaser.In an action by
Federated against Grove,
Under the Documents of Title Article of the UCC,
which of the following terms must be contained in
a warehouse receipt?

Which of the following statements is correct
concerning a bill of lading in the possession of
Major Corp. that was issued by a common carrier
and provides that the goods are to be delivered "to
bearer"?
Which of the following statements is correct
concerning a common carrier that issues a bill of
lading stating that the goods are to be delivered
"to the order of Ajax"?
Creditor A agreed to loan Debtor D the money for
the purchase of inventory. Debtor D signed a
security agreement on October 1. Creditor A filed a
financing statement on the goods on October 2.
The inventory was shipped FOB place of shipment
on October 5. When did the security interest
attach?
Under the Secured Transactions Article of the UCC,
all of the following are needed to create
enforceable security interest except
which of the following security agreements does
NOT need to be in writing to be enforceable?
which of the following statements is correct

regarding a security interest that has not
attached?
Under the Secured Transactions article of the UCC,
when does a security interest become enforceable?
Under the UCC Secured Transactions Article, which
of the following events will always prevent a
security interest from attaching?
Under the UCC Secured Transactions Article, when
collateral is in a secured party's possession, which
of the following conditions must also be satisfied
to have attachment?
what secured transaction document must be
signed by the debtor?
which of the following requirements is necessary
to have a security interest attach?
Grey Corp. sells computers to the public. Grey sold
and delivered a computer to West on credit. West
executed and delivered to Grey a promissory note
for the purchase price and a security agreement
covering the computer. West purchased the
computer for personal use. Grey did not file a

financing statement.Is Grey's security interest
perfected?
Which of the following requires a filing for
perfection?
Sun, Inc., manufactures and sells household
appliances on credit directly to wholesalers,
retailers, and consumers.Sun can perfect its
security interest in the appliances without having
to file a financing statement or take possession of
the appliances if the sale is made by Sun to
Which of the following transactions would
illustrate a secured party perfecting its security
interest by taking possession of the collateral?
of the following must be included in the financing
statement?
Mars, Inc., manufactures and sells VCRs on credit
directly to wholesalers, retailers, and consumers.
Mars can perfect its security interest in the VCRs it
sells without having to file a financing statement
or take possession of the VCRs if the sale is made
to

The Smiths are remodeling their kitchen and want
to purchase new appliances: a large refrigerator-
freezer, microwave oven, dishwasher, garbage
disposal, and stove-oven. Z Bank has advertised a
special consumer loan rate, and AP Appliances has
great discount rates on appliances. The Smiths can
only pay AP Appliances 20% of the purchase price.
AP Appliances' credit rates are higher than Z
Bank's consumer loan rates. The Smiths sign a
security agreement putting up the to-be-
purchased listed appliances as security, and Z
Bank issues a check for the balance payable to AP
Appliances and the Smiths. Which of the following
statements is correct?
which of the following items can usually be
excluded from a filed original financing statement?
Jones lives in Oklahoma and is the owner of a large
number of valuable antiques. Treasures Delight,
located in Arkansas, is a seller of antiques.
Treasures Delight is owned by Sally Delight.
Delight offers to purchase all of the antiques
owned by Jones paying 60% of the agreed price
and, by agreement, signs a security agreement for
the balance putting up her entire inventory as
security. The security agreement provides for

monthly payments. Which of the following is
correct?
Under the UCC Secured Transactions Article, what
is the order of priority for the following security
interests in store equipment?
of the following after-acquired property may be
attached to a security agreement given to a
secured lender?
On July 8, Ace, a refrigerator wholesaler,
purchased 50 refrigerators. This comprised Ace's
entire inventory and was financed under an
agreement with Rome Bank that gave Rome a
security interest in all refrigerators on Ace's
premises, all future acquired refrigerators, and the
proceeds of sales. On July 12, Rome filed a
financing statement that adequately identified the
collateral. On August 15, Ace sold one refrigerator
to Cray for personal use and four refrigerators to
Zone Co. for its business.Which of the following
Under the UCC Secured Transaction Article, what is
the effect of perfecting a security interest by filing
a financing statement?

Vista is a wholesale seller of microwave ovens.
Vista sold 50 microwave ovens to Davis Appliance
for $20,000. Davis paid $5,000 down and signed a
promissory note for the balance. Davis also
executed a security agreement giving Vista a
security interest in Davis' inventory, including the
ovens. Assuming Vista is a partnership, which of
the following statements is correct?
Wine purchased a computer using the proceeds of
a loan from MJC Finance Company. Wine gave MJC
a security interest in the computer. Wine executed
a security agreement and financing statement,
which was filed by MJC. Wine used the computer to
monitor Wine's personal investments. Later, Wine
sold the computer to Jacobs for Jacobs' family use.
Jacobs was unaware of MJC's security interest.
Wine now is in default under the MJC loan.May MJC
repossess the computer from Jacobs?
Noninventory goods were purchased and
delivered on June 15. Several security interests
exist in these goods.Which of the following
security interests has priority over the others?
A debtor purchased an LCD television from Best
Buy for $1,000. BestBuy financed the transaction.
With finance charges, the total cost of the financing

is $1,200. After the debtor has paid $600, he
defaults on the payment and BestBuy repossesses
the TV. BestBuy has decided to keep the TV as a
floor display model. The debtor believes it would
be best if BestBuy sold the TV.
A debtor is in default. The collateral consists of
100 cows described in the security agreement.
Thirty cows were stolen through no fault of the
debtor. Which of the following statements is
correct concerning the secured party's rights due
to the debtor's default?
Under the UCC Secured Transactions Article, if a
debtor is in default under a payment obligation
secured by goods, the secured party has the right
to
which of the following remedies is available to a
secured creditor when a debtor fails to make a
payment when due?
Drew bought a computer for personal use from
Hale Corp. for $3,000. Drew paid $2,000 in cash
and signed a security agreement for the balance.
Hale properly filed the security agreement. Drew
defaulted in paying the balance of the purchase
price. Hale asked Drew to pay the balance. When

Drew refused, Hale peacefully repossessed the
computer.Under the UCC Secured Transactions
Article, which of the following remedies will Hale
have?
In what order are the following obligations paid
after a secured creditor rightfully sells the
debtor's collateral after repossession?
of the following statements is correct concerning
the disposition of collateral by a secured creditor
after a debtor's default?
Edwards Corp. lent Lark $200,000. At Edwards'
request, Lark entered into an agreement with
Owen and Ward for them to act as compensated
co-sureties on the loan in the amount of $200,000
each.If Edwards releases Ward without Owen's or
Lark's consent, and Lark later defaults, which of
the following statements is correct?
Mane Bank lent Eller $120,000 and received
securities valued at $30,000 as collateral. At
Mane's request, Salem and Rey agreed to act as
uncompensated co-securities on the loan. The
agreement provided that Salem's and Rey's
maximum liability would be $120,000 each. Mane
released Rey without Salem's consent. Eller later

defaulted when the collateral held by Mane was
worthless and the loan balance was
$90,000.Salem's maximum liability is
Lane accepted the commitments of the sureties
and made the loan to Turner. After paying ten
installments totaling $100,000, Turner defaulted.
Clark's debts, including the surety obligation to
Lane on the Turner loan, were discharged in
bankruptcy. Later, Rivers properly paid the entire
outstanding debt of $140,000.What amount may
Rivers recover from Zane?
Which of the following rights does one cosurety
generally have against another cosurety?
Sorus and Ace have agreed, in writing, to act as
guarantors of collection on a debt owed by Pepper
to Towns, Inc. The debt is evidenced by a
promissory note.If Pepper defaults, Towns will be
entitled to recover from Sorus and Ace unless
Ivor borrowed $420,000 from Lear Bank. At Lear's
request, Ivor entered into an agreement with Ash,
Kane, and Queen for them to act as co-sureties on
the loan. The agreement between Ivor and the co-
sureties provided that the maximum liability of
each co-surety was: Ash, $84,000; Kane, $126,000;
and Queen, $210,000. After making several

payments, Ivor defaulted on the loan. The balance
was $280,000.If Queen pays $210,000 and Ivor
subsequently pays $70,000, what amounts may
Queen recover from Ash and Kane?
Camp orally guaranteed payment of a loan Camp's
cousin Wilcox had obtained from Camp's friend
Main. The loan was to be repaid in 10 monthly
payments. After making 6 payments, Wilcox
defaulted on the loan and Main demanded that
Camp honor the guarantee. Regarding Camp's
liability to Main, Camp is
Nash, Owen, and Polk are co-sureties with
maximum liabilities of $40,000, $60,000, and
$80,000, respectively. The amount of the loan on
which they have agreed to act as co-sureties is
$180,000. The debtor defaulted at a time when the
loan balance was $180,000. Nash paid the lender
$36,000 in full settlement of all claims against
Nash, Owen, and Polk.The total amount that Nash
may recover from Owen and Polk is
A party contracts to act as a surety for the
collection of the debts of another. As a result of the
suretyship agreement, which of the following

Wright cosigned King's loan from Ace Bank. Which
of the following events would release Wright from
the obligation to pay the loan?
State refused to renew the loan unless Green
provided an acceptable surety. Green asked Royal,
a friend, to act as surety on the loan. To induce
Royal to agree to become a surety, Green
fraudulently represented Green's financial
condition and promised Royal discounts on
merchandise sold at Green's store. Royal agreed to
act as surety and the loan was renewed. Later,
Green's obligation to State was discharged in
Green's bankruptcy. State wants to hold Royal
liable.
A distinction between a surety and a co-surety is
that only a co-surety is entitled to
Which of the following acts will always result in
the total release of a compensated surety?
Which of the following defenses would a surety be
able to assert successfully to limit the surety's
liability to a creditor?
Ingot Corp. lent Flange $50,000. At Ingot's request,
Flange entered into an agreement with Quill and
West for them to act as compensated co-sureties

on the loan in the amount of $100,000 each. Ingot
released West without Quill's or Flange's consent,
and Flange later defaulted on the loan.Which of the
Which of the following rights does a surety have?
Batch Department store sold a refrigerator to
Conrad for his home. Conrad agreed to installment
payments and Batch had him sign a security
agreement. Batch did not file a financing
statement. After having the refrigerator in his
home for a time, Conrad quit making payments
and sold it to Backus for use in her home. Backus
was unaware that Conrad still owed Batch for the
refrigerator. Batch is now seeking to get paid for
the balance owed or to repossess the refrigerator.
Which of the following statements is correct?
a secured party generally must comply with each
of the following duties except:
Acorn Marina, Inc. sells and services boat motors.
On April 1, Acorn financed the purchase of its
entire inventory with GAC Finance Company. GAC
required Acorn to execute a security agreement
and financing statement covering the inventory
and proceeds of sale. On April 14, GAC properly

filed the financing statement pursuant to the UCC
Secured Transactions Article. On April 27, Acorn
sold one of the motors to Wilks for use in his
charter business. Wilks, who had once worked for
Acorn, knew that Acorn regularly financed its
inventory with GAC. Acorn has defaulted on its
obligations to GAC. The motor purchased by Wilks
is
Under certain conditions, perfection of a security
interest is accomplished by completing attachment
with no further steps required. Which of the
following qualify?
Hoover is a holder in due course of a check which
was originally payable to the order of Nelson or
bearer and has the following endorsements on its
back:
Which of the following statements about the check
is correct?
UCC, which of the following statements is(are)
correct regarding the requirements for an
instrument to be negotiable?

UCC, which of the following defenses generally may
be used against all holders of negotiable
instruments?
On November 10, Cutter, a dealer, purchased 100
lawnmowers. This comprised Cutter’s entire
inventory and was financed under an agreement
with Town Bank which gave the bank a security
interest in all lawnmowers on the premises, all
future acquired lawnmowers, and the proceeds of
sales. On November 15, Town Bank filed a
financing statement that adequately identified the
collateral. On December 20, Cutter sold one
lawnmower to Wills for family use and five
lawnmowers to Black for its gardening business.
Which of the following is correct?
Cara Fabricating Co. and Taso Corp. agreed orally
that Taso would custom manufacture a
compressor for Cara at a price of $120,000. After
Taso completed the work at a cost of $90,000, Cara
notified Taso that the compressor was no longer
needed. Taso is holding the compressor and has
requested payment from Cara. Taso has been
unable to resell the compressor for any price. Taso
incurred storage fees of $2,000.If Cara refuses to

pay Taso and Taso sues Cara, the most Taso will be
entitled to recover is
On February 15, Mazur Corp. contracted to sell
1,000 bushels of wheat to Good Bread, Inc., at
$6.00 per bushel with delivery to be made on June
23. On June 1, Good advised Mazur that it would
not accept or pay for the wheat. On June 2, Mazur
sold the wheat to another customer at the market
price of $5.00 per bushel. Mazur had advised Good
that it intended to resell the wheat.Which of the
Under the UCC Sales Article, which of the following
legal remedies would a buyer not have when a
seller fails to transfer and deliver goods identified
to the contract?
Gray Fabricating Co. and Pine Corp. agreed orally
that Pine would custom manufacture a processor
for Gray at a price of $80,000.After Pine completed
the work at a cost of $60,000, Gray notified Pine
that the processor was no longer needed. Pine is
holding the processor and has requested payment
from Gray. Pine has been unable to resell the
processor for any price. Pine incurred storage fees
of $1,000.If Gray refuses to pay Pine and Pine sues
Gray, the most Pine will be entitled to recover is

In an action for breach of contract, the statute of
limitations time period would be computed from
the date of the
Under the Sales Article of the UCC, which of the
following rights is available to a seller when a
buyer materially breaches a sales contract?
Under the Sales Article of the UCC, which of the
following statements regarding liquidated
damages is(are) correct?
Eagle Corporation solicited bids for various parts
it uses in the manufacture of jet engines. Eagle
received six offers and selected the offer of Sky
Corporation. The written contract specified a price
for 100,000 units, delivery on June 1 at Sky's plant,
with payment on July 1, Sky refused to deliver
claiming the contract price was too low. Eagle was
unable to cover in a reasonable time. Its
production lines were in danger of shutdown
because the parts were not delivered.

Uop acc 543 week 4 exam new syllabus

Recommended

Recommended

More Related Content

What's hot

What's hot (17)

Similar to Uop acc 543 week 4 exam new syllabus

Similar to Uop acc 543 week 4 exam new syllabus (19)

More from shamek1236

More from shamek1236 (13)

Recently uploaded

Recently uploaded (20)

Uop acc 543 week 4 exam new syllabus