<p> Bakersfield College BSAD B18 Business Law Quiz 3</p><p>Student’s Name ______Due: 7/20/17 Select the most correct answer. ANSWER on a Form 882E Scan-Tron</p><p>1) The law is a set of rules for society to live by. True False</p><p>2) Promoting social justice is a function of the law. True False </p><p>3) General jurisdiction trial courts can be found in every state. True False</p><p>4) Each state has at least one U.S. District Court. True False</p><p>5) A deposition is written questions submitted by one party to a lawsuit to another party. True False </p><p>6) Interrogatories are oral testimony given by a party or witness prior to trial. True False </p><p>7) Contracts are an area of law that society is willing to enforce. True False </p><p>8) A Business’ “Social Responsibility” is to act lawfully and to maximize profits. True False </p><p>9) To create an enforceable contract, there must be an agreement, consideration, contractual capacity, and a lawful objective. True False </p><p>10) In order to be a “Holder In Due Course” there must be a negotiable instrument for value, received in good faith, without notice of overdue or dishonored, or without certain defenses. True False </p><p>11) A Holder In Due Course of a negotiable instrument is generally subject to claims and personal defenses that could be raised by the original parties. True False </p><p>12) Gifts, Inheritances, mere promises do not constitute “value” for a Holder In Due Course. True False </p><p>13) “Real” Defenses work against a Holder in Due Course. True False 14) “Real” Defenses include: a) Fraud b) Forgery c) Infancy d) Material Alteration e) All of the above </p><p>15) “Personal” Defenses work against Holders in Due Course. True False </p><p>16) “Personal” Defenses include: a) Lack of Consideration b) Nonperformance c) Undue Influence d) Non-delivery e) All of the above. </p><p>17) A deposit into a bank creates a contract relationship between the customer and the bank. True False </p><p>18) When someone deposits money into a bank account (i.e. checking account), the bank becomes the customer’s debtor. True False </p><p>19) A bank customer has a duty to review their statement. True False </p><p>20) According to the U.C.C., customers are not required to maintain sufficient funds in a checking account to cover the checks the customer expects to write. True False </p><p>21) Commercial Paper is an unconditional written demand or order to pay money. True False </p><p>22) A negotiable instrument must be: a) in writing and signed by the drawer. b) State a fixed amount of money, payable “to order” or “bearer”. c) Not require any undertaking (other than to pay money). d) Be payable upon demand or at a time certain. e) All of the above. </p><p>23) A Certificate of Deposit is a form of Commercial Paper. True False </p><p>24) A “Draft” is a tow-party instrument. True False </p><p>25) A Check is a distinct form of a Draft drawn on a financial institution and payable on demand. True False 26) Promissory Notes are a three-party negotiable instrument. True False </p><p>27) Specialized types of Commercial Paper include: a) Certified Checks b) Teller’s Check c) Cashier’s Check d) Money Orders e) All of the above. </p><p>28) Negotiable Instruments serve as a substitute for money. True False </p><p>29) Negotiable Instruments serve as a substitute for a credit device. True False </p><p>30) A nonnegotiable instrument is useless and has no legal value. True False </p><p>31) Bankruptcy is a legal procedure for settling debts of legal entities that are unable to pay their debts as they become due. True False </p><p>32) The founders of the United States thought the plight of debtors was so important that they included a provision in the U.S. Constitution. True False </p><p>33) Bankruptcy cases are heard in federal courts. True False </p><p>34) One of the goals of federal bankruptcy law is to give debtors a chance at a fresh start financially. True False </p><p>35) The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, makes it easier for debtors to escape from their debts under federal bankruptcy law. True False </p><p>36) In addition to federal bankruptcy laws, there are individual state bankruptcy laws as well. True False </p><p>37) Under the 2005 Act, a debtor may be given only a partial fresh start as s/he may have to pay more of their pre-petition debts out of post-petition earnings. True False </p><p>38) The U.S. Trustee may perform many of the tasks that the bankruptcy judge had previously performed. True False </p><p>39) An involuntary petition for bankruptcy is filed by creditors and places the debtor into bankruptcy. True False 40) Attorneys may be fined for factual discrepancies under the 2005 Act. True False </p><p>41) The effect of an automatic stay is to suspend certain legal actions by creditors against the debtor or debtor’s property. True False </p><p>42) Bankruptcy laws vary from state to state. True False </p><p>43) The Bankruptcy Code provides for which type of “discharge”? a) Chapter 7 – Liquidation b) Chapter 11 - Business Reorganization c) Chapter 13 – Adjustment of an Individual’s Debt d) All of the above e) None of the above </p><p>44) Homestead exemptions are state laws and therefore vary from state to state. True False </p><p>45) Numerous federal consumer protections laws apply to debtor/creditor relationship. True False </p><p>46) All debts are dischargeable in Bankruptcy. True False </p><p>THIS QUIZ IS TO BE SUBMITTED at the end of class THURSDAY, July 20,, 2017 </p><p>Keep Reading the Text! </p>