11/15/24, 2:39 PM WGU C713 BUSINESS LAW EXAM EXAM 2 VERSIONS (VERSION A AND B) COMPLETE 400 QUESTIONS WITH DETAILED V…
WGU C713 BUSINESS LAW EXAM EXAM 2
VERSIONS (VERSION A AND B) COMPLETE 400
QUESTIONS WITH DETAILED VERIFIED ANSWERS
/ALREADY GRADED A+
Practice questions for this set
Learn
Studied 7 terms
Nice work, you're crushing it
Continue studying in Learn
Terms in this set (125)
negotiation is the transfer of an instrument in such
Define and describe
form that the transferee becomes a holder
"negotiation."
requires both delivery and indorsement
https://quizlet.com/971861943/wgu-c713-business-law-exam-exam-2-versions-version-a-and-b-complete-400-questions-with-detailed-verified-answer… 1/50
,11/15/24, 2:40 PM WGU C713 BUSINESS LAW EXAM EXAM 2 VERSIONS (VERSION A AND B) COMPLETE 400 QUESTIONS WITH DETAILED V…
order instrument or a bearer instrument.
Order Instrument
contains the name of a payee capable of indorsing, as
What are the two methods in "Pay to the order of Jamie Fowler.
of negotiation?
Bearer Instrument
negotiated by delivery—that is, by transfer into
another person's possession. Indorsement is not
necessary
a signature with or without additional words or
statements.
Most often written on the back.
If there is no room on the instrument, the
What as an
endorsement can be written on a separate piece of
"endorsement?"
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.
https://quizlet.com/971861943/wgu-c713-business-law-exam-exam-2-versions-version-a-and-b-complete-400-questions-with-detailed-verified-answer… 2/50
,11/15/24, 2:40 PM WGU C713 BUSINESS LAW EXAM EXAM 2 VERSIONS (VERSION A AND B) COMPLETE 400 QUESTIONS WITH DETAILED V…
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
Differentiate between
unqualified endorsements. In other words, the
blank, special, qualified,
endorser is guaranteeing payment of the instrument in
and restrictive
addition to transferring title to it.
endorsements.
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
1. Misspelled Names
Describe some of the
2. Instruments can be payable to Entities
common endorsement
3. Alternative or Joint Payees-requires endorsement of
problems.
only one of the payees
When an instrument is transferred, an ordinary holder
obtains only those rights that the transferor had in the
Differentiate between a
instrument.
holder and a holder in due
holder in due course (HDC) takes an instrument free
course (HDC).
of most of the defenses and claims that could be
asserted against the transferor.
https://quizlet.com/971861943/wgu-c713-business-law-exam-exam-2-versions-version-a-and-b-complete-400-questions-with-detailed-verified-answer… 3/50
, 11/15/24, 2:40 PM WGU C713 BUSINESS LAW EXAM EXAM 2 VERSIONS (VERSION A AND B) COMPLETE 400 QUESTIONS WITH DETAILED V…
1. for value
What are the three 2. in good faith
requirements for holder in 3. without notice that it is defective (such as when the
due course (HDC)? instrument is overdue, dishonored, irregular, or
incomplete)
The principle that the holder of a negotiable
instrument who cannot qualify as a holder in due
course (HDC), but who derives his or her title through
an HDC, acquires the rights of an HDC.
Anyone, no matter how far removed from an HDC,
Describe the "Shelter
who can ultimately trace her or his title back to an
Principle."
HDC comes within the shelter principle. The idea is
based on the legal theory that the transferee of an
instrument receives at least the rights that the
transferor had.
Limitations if fraud is involved.
Define "Deceptive occurs if a reasonable consumer would be misled by
Advertising. the advertising claim.
The FTC actively monitors online advertising and has
identified hundreds of Web sites that have made false
Explain how online
or deceptive claims for products.
deceptive advertising is
The FTC has issued guidelines to help online
monitored.
businesses comply with existing laws prohibiting
deceptive advertising
1. Formal Complaint
2. Cease and desist order
3. Counteradvertising-correct earlier false claims that
Describe the actions that
were made about a product
can be taken by the FTC
4. Multiple product order-requires a firm to stop false
advertising for all of its products.
5. Restitution
https://quizlet.com/971861943/wgu-c713-business-law-exam-exam-2-versions-version-a-and-b-complete-400-questions-with-detailed-verified-answer… 4/50
WGU C713 BUSINESS LAW EXAM EXAM 2
VERSIONS (VERSION A AND B) COMPLETE 400
QUESTIONS WITH DETAILED VERIFIED ANSWERS
/ALREADY GRADED A+
Practice questions for this set
Learn
Studied 7 terms
Nice work, you're crushing it
Continue studying in Learn
Terms in this set (125)
negotiation is the transfer of an instrument in such
Define and describe
form that the transferee becomes a holder
"negotiation."
requires both delivery and indorsement
https://quizlet.com/971861943/wgu-c713-business-law-exam-exam-2-versions-version-a-and-b-complete-400-questions-with-detailed-verified-answer… 1/50
,11/15/24, 2:40 PM WGU C713 BUSINESS LAW EXAM EXAM 2 VERSIONS (VERSION A AND B) COMPLETE 400 QUESTIONS WITH DETAILED V…
order instrument or a bearer instrument.
Order Instrument
contains the name of a payee capable of indorsing, as
What are the two methods in "Pay to the order of Jamie Fowler.
of negotiation?
Bearer Instrument
negotiated by delivery—that is, by transfer into
another person's possession. Indorsement is not
necessary
a signature with or without additional words or
statements.
Most often written on the back.
If there is no room on the instrument, the
What as an
endorsement can be written on a separate piece of
"endorsement?"
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.
https://quizlet.com/971861943/wgu-c713-business-law-exam-exam-2-versions-version-a-and-b-complete-400-questions-with-detailed-verified-answer… 2/50
,11/15/24, 2:40 PM WGU C713 BUSINESS LAW EXAM EXAM 2 VERSIONS (VERSION A AND B) COMPLETE 400 QUESTIONS WITH DETAILED V…
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
Differentiate between
unqualified endorsements. In other words, the
blank, special, qualified,
endorser is guaranteeing payment of the instrument in
and restrictive
addition to transferring title to it.
endorsements.
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
1. Misspelled Names
Describe some of the
2. Instruments can be payable to Entities
common endorsement
3. Alternative or Joint Payees-requires endorsement of
problems.
only one of the payees
When an instrument is transferred, an ordinary holder
obtains only those rights that the transferor had in the
Differentiate between a
instrument.
holder and a holder in due
holder in due course (HDC) takes an instrument free
course (HDC).
of most of the defenses and claims that could be
asserted against the transferor.
https://quizlet.com/971861943/wgu-c713-business-law-exam-exam-2-versions-version-a-and-b-complete-400-questions-with-detailed-verified-answer… 3/50
, 11/15/24, 2:40 PM WGU C713 BUSINESS LAW EXAM EXAM 2 VERSIONS (VERSION A AND B) COMPLETE 400 QUESTIONS WITH DETAILED V…
1. for value
What are the three 2. in good faith
requirements for holder in 3. without notice that it is defective (such as when the
due course (HDC)? instrument is overdue, dishonored, irregular, or
incomplete)
The principle that the holder of a negotiable
instrument who cannot qualify as a holder in due
course (HDC), but who derives his or her title through
an HDC, acquires the rights of an HDC.
Anyone, no matter how far removed from an HDC,
Describe the "Shelter
who can ultimately trace her or his title back to an
Principle."
HDC comes within the shelter principle. The idea is
based on the legal theory that the transferee of an
instrument receives at least the rights that the
transferor had.
Limitations if fraud is involved.
Define "Deceptive occurs if a reasonable consumer would be misled by
Advertising. the advertising claim.
The FTC actively monitors online advertising and has
identified hundreds of Web sites that have made false
Explain how online
or deceptive claims for products.
deceptive advertising is
The FTC has issued guidelines to help online
monitored.
businesses comply with existing laws prohibiting
deceptive advertising
1. Formal Complaint
2. Cease and desist order
3. Counteradvertising-correct earlier false claims that
Describe the actions that
were made about a product
can be taken by the FTC
4. Multiple product order-requires a firm to stop false
advertising for all of its products.
5. Restitution
https://quizlet.com/971861943/wgu-c713-business-law-exam-exam-2-versions-version-a-and-b-complete-400-questions-with-detailed-verified-answer… 4/50
