Active TopicsActive Topics  Display List of Forum MembersMemberlist  Search The ForumSearch  HelpHelp
  RegisterRegister  LoginLogin
REG STUDY GROUP
 CPAnet Forum : REG STUDY GROUP
Subject Topic: two similar MC questions have errors? (Topic Closed Topic Closed) Post ReplyPost New Topic
  
Author
Message << Prev Topic | Next Topic >>
kanba
Newbie
Newbie


Joined: 06 Nov 2011
Online Status: Offline
Posts: 29
Posted: 17 Dec 2011 at 19:35 | IP Logged  

I am studying commercial paper part and found there are 2 questions seem similar but the answers are contrary with mine. Could anyone help me to explain it?

1. Teff entered Archer's office and stole from Archer some radios and Archer's wallet containing identification. Subsequently, representing himself as Archer, Teff induced Bane to purchase one of the stolen radios for a fair price. Bane gave Teff his chec mad out"Pay to the order of Archer." Teff endorsed the check "Pay to the order of Crown, Archer" and transferred it to Crown fro cash in the amount of the check. Crown endorsed the check"Pay to the order of Fox, Crown" and transferred the check to Fox to be applied to his account. Bane's check was

The answer is "Order papaer initially and negotiated by Teff to Crown"

2.Klep stole several negotiable warehouse recipts, which were deliverable to the order of Apple from the premises of Store. Klep enorsed Store's name on the instruments and transferred them to Margo, a bona fide purchaser for value. As between Store and Margo,

The answer is " Store will prevail because Klep's endorsement prevents negotiation."

I know the rules are If the unauthorized signature is of an endorsement, negotiation cannot occur. However, if the forgery is of a drawer's or maker's, negotiation can occur.

For the first question, I think it is forgery of endorsement so cannot negotiation and second question is forgery of drawer that can negotiate, but the answers are on the contrary.

Back to Top View kanba's Profile Search for other posts by kanba
 
Entourage
Newbie
Newbie


Joined: 06 Dec 2011
Online Status: Offline
Posts: 19
Posted: 18 Dec 2011 at 22:23 | IP Logged  

I can't understand those questions because of the typos but I will be doing the commercial paper MC questions tomorrow and will post here when I come across it.
Back to Top View Entourage's Profile Search for other posts by Entourage
 
cpaGuy85
Newbie
Newbie


Joined: 01 Sep 2011
Online Status: Offline
Posts: 44
Posted: 19 Dec 2011 at 00:00 | IP Logged  

My first thoughts are that the questions are asking different things.

For the first one, nothing on the back of the instrument can destroy
negotiability. It is order paper first - "Pay to the order of Archer...." ....he
signs it and negotiates it to Crown who then endorses it and negotiates it to
Fox.

Not sure what the other answer choices were, but the answer you indicate
looks true.
Back to Top View cpaGuy85's Profile Search for other posts by cpaGuy85
 
darkone
Newbie
Newbie


Joined: 17 Nov 2011
Online Status: Offline
Posts: 5
Posted: 19 Dec 2011 at 11:07 | IP Logged  

No, the asnwer is correct. The first question is under Commercial Paper topic, and the second question is covering an item in the Title Portion of the code which various a little bit when a forgery occurs in the warehouse receipt cases and bill of lading. The original owner prevails. I am using Becker, and they emphasize on the difference.

I hope this helps.

Back to Top View darkone's Profile Search for other posts by darkone
 
kanba
Newbie
Newbie


Joined: 06 Nov 2011
Online Status: Offline
Posts: 29
Posted: 19 Dec 2011 at 20:46 | IP Logged  

Thank you, darkone. I found the topic in Becker.
Back to Top View kanba's Profile Search for other posts by kanba
 



Sorry, you can NOT post a reply.
This topic is closed.


  Post ReplyPost New Topic
Printable version Printable version

Forum Jump
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot delete your posts in this forum
You cannot edit your posts in this forum
You cannot create polls in this forum
You cannot vote in polls in this forum

Powered by Web Wiz Forums version 7.9
Copyright ©2001-2010 Web Wiz Guide

This page was generated in 0.1094 seconds.

Copyright © 1996-2016 CPAnet/MizWeb Communities All Rights Reserved
Twitter
|Facebook |CPA Exam Club | About | Contact | Newsletter | Advertise & Promote