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Negotiable and Non-negotiable Instruments

4. Medic Equip, Inc., manufactures medical devices. Tom is injured while
using a Medic pacemaker and sues Medic for product liability based on
strict liability. To win, Tom must show that
a. he was in privity of contract with Medic.
b. Medic did not use due care with respect to the pacemaker.
c. Medic misrepresented a material fact regarding the pacemaker, on
which Tom relied.
d. none of the above.

5. Sue signs an instrument using an "S" with a circle around it. With this
mark for a signature, the instrument is
a. negotiable.
b. nonnegotiable, because an initial does not constitute an authorized
signature.
c. nonnegotiable, because the nature of the signature raises the
presumption that Sue did not intend for it to be binding.
d. nonnegotiable, because a signature must be in full to completely
identify the party whose name it represents.

6. On May 1, Doug signs a check that is payable to the order of Eagle Credit
Card Corporation and that is dated July 1. This check is
a. negotiable.
b. nonnegotiable, because it is payable to Eagle Credit Card Corporation.
c. nonnegotiable, because it is postdated.
d. nonnegotiable, because it is signed by Doug.

7. Selena will not attain the status of an HDC if she knew or should have
known when she acquired a negotiable instrument that it
a. was overdue.
b. had been dishonored.
c. was subject to competing claims.
d. any of the above.

Solution Preview

Please refer to file atached, which is also presented below. I hope this helps andtake care.

RESPONSE:

4. Medic Equip, Inc., manufactures medical devices. Tom is injured while
using a Medic pacemaker and sues Medic for product liability based on
strict liability. To win, Tom must show that
a. he was in privity of contract with Medic.
b. Medic did not use due care with respect to the pacemaker.
c. Medic misrepresented a material fact regarding the pacemaker, on
which Tom relied.
d. none of the above** BEST ANSWER

Note: Many courts have expressly adopted the Restatement of Torts section 402(a) regarding strict liability. Thereunder, a plaintiff must prove that 1. the product in question was defective and unreasonably dangerous. 2. the ...

Solution Summary

This solution provides the best answers for multiple-choice questions e.g. negotiable and non-negotiable instruments, such as checks, etc. It also provides the references as a double check.

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