Asked by Isaac Matsie on Jul 14, 2024
Verified
Under the UCC Article 3, checks are considered negotiable instruments.
Negotiable Instruments
Negotiable instruments are financial documents representing a promise to pay a specified amount of money, such as checks, promissory notes, and bills of exchange.
UCC Article 3
It governs negotiable instruments, including checks and notes, within the Uniform Commercial Code.
Checks
Financial instruments that instruct a bank to pay a specific amount of money from the writer's account to the person or entity in whose name the check has been issued.
- Familiarize oneself with the specific characteristics and functions of diverse checks and negotiable instruments under the provisions of the Uniform Commercial Code.
Verified Answer
AG
Alyson GoodwinJul 17, 2024
Final Answer :
True
Explanation :
Under the Uniform Commercial Code (UCC) Article 3, checks are indeed considered negotiable instruments as they meet the criteria set forth for negotiability, including being an unconditional promise or order to pay a fixed amount of money.
Learning Objectives
- Familiarize oneself with the specific characteristics and functions of diverse checks and negotiable instruments under the provisions of the Uniform Commercial Code.