BUSINESS LAW FINAL IVY TECH ACTUAL
EXAM PAPER 2026 QUESTIONS AND
SOLUTIONS GRADED A+
◉ Vera gives Will a $500 check as payment for a debt. Will crudely
increases the amount of the check to $5,000 and deposits the check
in his First Bank account. Vera is liable for the payment of $5,000 to.
Answer: no one.
◉ A trade acceptance is created when, as part of a deal to buy wheat
from Moyo, Naruta signs a draft ordering the buyer to pay for the
wheat within ninety days..
Answer: True
◉ To most securely minimize the risk of loss on a loan evidenced by
a note, a creditor needs only the debtor's promise that the note will
be paid..
Answer: False
◉ Home Products, Inc., warrants its goods to be free of defects. Ian
issues an instrument to Home Products for the purchase of a
thermos that leaks. With respect to payment on the instrument, Ian.
, Answer: has a personal defense against it.
◉ A holder will be deemed to have notice of a defect in an
instrument if he or she has reason to know that it exists, given all the
facts and circumstances known at the time..
Answer: True
◉ The holder of a note who needs the funds owed on it can transfer
it for cash to a third party, whom the maker must pay when the note
comes due..
Answer: True
◉ Both stored-value cards and smart cards contain microchips with
security programming that can authenticate the validity of a
financial transaction..
Answer: False
◉ When a bank draws a check on itself, the check is a negotiable
instrument at the moment it is issued..
Answer: True
◉ A check may fall under Uniform Commercial Code Article 3 as a
negotiable instrument and be subject to UCC Article 4 in the course
of collection..
EXAM PAPER 2026 QUESTIONS AND
SOLUTIONS GRADED A+
◉ Vera gives Will a $500 check as payment for a debt. Will crudely
increases the amount of the check to $5,000 and deposits the check
in his First Bank account. Vera is liable for the payment of $5,000 to.
Answer: no one.
◉ A trade acceptance is created when, as part of a deal to buy wheat
from Moyo, Naruta signs a draft ordering the buyer to pay for the
wheat within ninety days..
Answer: True
◉ To most securely minimize the risk of loss on a loan evidenced by
a note, a creditor needs only the debtor's promise that the note will
be paid..
Answer: False
◉ Home Products, Inc., warrants its goods to be free of defects. Ian
issues an instrument to Home Products for the purchase of a
thermos that leaks. With respect to payment on the instrument, Ian.
, Answer: has a personal defense against it.
◉ A holder will be deemed to have notice of a defect in an
instrument if he or she has reason to know that it exists, given all the
facts and circumstances known at the time..
Answer: True
◉ The holder of a note who needs the funds owed on it can transfer
it for cash to a third party, whom the maker must pay when the note
comes due..
Answer: True
◉ Both stored-value cards and smart cards contain microchips with
security programming that can authenticate the validity of a
financial transaction..
Answer: False
◉ When a bank draws a check on itself, the check is a negotiable
instrument at the moment it is issued..
Answer: True
◉ A check may fall under Uniform Commercial Code Article 3 as a
negotiable instrument and be subject to UCC Article 4 in the course
of collection..
