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1. Under the Uniform Commercial Code (UCC), value has not been given if the holder (1 point)
gives an irrevocable obligation as payment.
gives a non-negotiable instrument.
performs the agreed-upon promise.
acquires a security interest
2. If an individual takes an instrument believing it was intended as an honest transaction, then he or she will qualify as a holder in due course based on which of the following requirements? (1 point)
in good faith
without notice of defect
no evidence of irregularity
for value
3. Helen Harrison creates an instrument containing the words “pay Jose Sanchez” and her signature. This is a _____________ endorsement and creates __________ paper. (1 point)
qualified, order
special; bearer
special; order
blank; bearer
4. Breach of contract, fraud, illegality of a contract, and the discharge of an instrument by cancellation are all examples of (1 point)
taking without notice of defect.
no evidence of forgery.
immunity from personal defenses.
personal defenses
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