WGU C713 BUSINESS LAW EXAM 2 EXAM VERSIONS (VERSION A
AND B) ACTUAL COMPLETE 400 REAL EXAM QUESTIONS WITH
CORRECT DETAILED ANSWERS ( VERIFIED ANSWERS)
/ALREADY GRADED A+
What is the Statute of Limitations for a breach of warranty? -
ANSWER -a cause of action for breach of contract under the UCC
must be commenced within four years after the breach occurs. An
action for breach of warranty accrues when the seller or lessor
tenders delivery, even if the buyer or lessee is unaware of the
breach at that time.the nonbreaching party usually must notify the
breaching party within a reasonable time after discovering the
breach or be barred from pursuing any remedy
Inconsistent Warranties - ANSWER -Express warranties displace
inconsistent implied warranties, except implied
warranties of fitness for a
particular purpose.
Samples take precedence over inconsistent general descriptions.
Exact or technical specifications displace inconsistent samples or
general descriptions.
,Disclaimers - ANSWER -Disclaimer of
Merchantability-Can be given orally
Disclaimer of Implied Warranty of
Fitness- Must be in writing
Define and describe "negotiation." - ANSWER -negotiation is the
transfer of an instrument in such form that the
transferee
becomes a
holder
requires both delivery
and indorsement
What are the two methods of negotiation? - ANSWER -order
instrument or a bearer instrument.
Order
Instrument
contains the name of a payee capable of indorsing, as
in "Pay to the order of Jamie Fowler.
Bearer
Instrument
negotiated by delivery—that is, by transfer into another person's
possession. Indorsement is not necessary
,What as an "endorsement?" - ANSWER -a signature with or without
additional words or statements.
Most often written on the back.
If there is no room on the instrument, the endorsement can be
written on a separate piece of paper (called an allonge)
A person who transfers a note or a draft by signing (endorsing) it
and delivering it to another person is an endorser. The person to
whom the check is endorsed and delivered is the endorsee.
Differentiate between blank, special, qualified, and restrictive
endorsements. - ANSWER -A blank endorsement
does not specify a particular indorsee and
can consist of a mere signature.
An order instrument indorsed in blank becomes a bearer
instrument and can be negotiated by delivery alone
A special endorsement contains the signature of the endorser
and identifies the person to whom the indorser
intends to make the instrument payable—that is, it
names the endorsee. An order instrument
unqualified endorsements. In other words, the endorser is
guaranteeing payment of the instrument in addition to
transferring
title to it.
, An indorser who does not wish to be liable on an instrument can
use a qualified indorsement to disclaim this
liability [UCC 3-415(b)]. The notation "without recourse" is
commonly used to create a qualified indorsement.
A restrictive indorsement requires the indorsee to comply with
certain instructions regarding the funds involved
but does not prohibit further
negotiation of the instrument
Describe some of the common endorsement
problems. - ANSWER -1. Misspelled Names
2. Instruments can be
payable to Entities
3. Alternative or Joint Payees-requires
endorsement of only one of the payees
Differentiate between a holder and a holder in due course (HDC). -
ANSWER -When an instrument is transferred, an ordinary holder
obtains only those rights that the transferor had in the instrument.
holder in due course (HDC) takes an instrument free of most of the
defenses and claims that could be asserted against the transferor.
What are the three requirements for holder in due course (HDC)? -
ANSWER -1. for value
AND B) ACTUAL COMPLETE 400 REAL EXAM QUESTIONS WITH
CORRECT DETAILED ANSWERS ( VERIFIED ANSWERS)
/ALREADY GRADED A+
What is the Statute of Limitations for a breach of warranty? -
ANSWER -a cause of action for breach of contract under the UCC
must be commenced within four years after the breach occurs. An
action for breach of warranty accrues when the seller or lessor
tenders delivery, even if the buyer or lessee is unaware of the
breach at that time.the nonbreaching party usually must notify the
breaching party within a reasonable time after discovering the
breach or be barred from pursuing any remedy
Inconsistent Warranties - ANSWER -Express warranties displace
inconsistent implied warranties, except implied
warranties of fitness for a
particular purpose.
Samples take precedence over inconsistent general descriptions.
Exact or technical specifications displace inconsistent samples or
general descriptions.
,Disclaimers - ANSWER -Disclaimer of
Merchantability-Can be given orally
Disclaimer of Implied Warranty of
Fitness- Must be in writing
Define and describe "negotiation." - ANSWER -negotiation is the
transfer of an instrument in such form that the
transferee
becomes a
holder
requires both delivery
and indorsement
What are the two methods of negotiation? - ANSWER -order
instrument or a bearer instrument.
Order
Instrument
contains the name of a payee capable of indorsing, as
in "Pay to the order of Jamie Fowler.
Bearer
Instrument
negotiated by delivery—that is, by transfer into another person's
possession. Indorsement is not necessary
,What as an "endorsement?" - ANSWER -a signature with or without
additional words or statements.
Most often written on the back.
If there is no room on the instrument, the endorsement can be
written on a separate piece of paper (called an allonge)
A person who transfers a note or a draft by signing (endorsing) it
and delivering it to another person is an endorser. The person to
whom the check is endorsed and delivered is the endorsee.
Differentiate between blank, special, qualified, and restrictive
endorsements. - ANSWER -A blank endorsement
does not specify a particular indorsee and
can consist of a mere signature.
An order instrument indorsed in blank becomes a bearer
instrument and can be negotiated by delivery alone
A special endorsement contains the signature of the endorser
and identifies the person to whom the indorser
intends to make the instrument payable—that is, it
names the endorsee. An order instrument
unqualified endorsements. In other words, the endorser is
guaranteeing payment of the instrument in addition to
transferring
title to it.
, An indorser who does not wish to be liable on an instrument can
use a qualified indorsement to disclaim this
liability [UCC 3-415(b)]. The notation "without recourse" is
commonly used to create a qualified indorsement.
A restrictive indorsement requires the indorsee to comply with
certain instructions regarding the funds involved
but does not prohibit further
negotiation of the instrument
Describe some of the common endorsement
problems. - ANSWER -1. Misspelled Names
2. Instruments can be
payable to Entities
3. Alternative or Joint Payees-requires
endorsement of only one of the payees
Differentiate between a holder and a holder in due course (HDC). -
ANSWER -When an instrument is transferred, an ordinary holder
obtains only those rights that the transferor had in the instrument.
holder in due course (HDC) takes an instrument free of most of the
defenses and claims that could be asserted against the transferor.
What are the three requirements for holder in due course (HDC)? -
ANSWER -1. for value
