QUIZ QUESTIONS
BANKING, LOANS, MONEY, AND CREDITS
1. Define a bank.
2. Classify banks.
3. How are national banks created?
4. What are state banks?
5. Define and distinguish banks of discount, banks of cirrculation, and banks of deposit.
6. Are most banks incorporated companies?
7. What are the powers of an incorporated bank?
8. Do banks have the power to deal in real estate?
9. Do banks have the power to collect commercial paper?
10. What are bank deposits?
11. Is a bank required to receive deposits from any one who tenders them?
12. What name is applied to the person authorized to receive bank deposits?
13. Do savings banks permit their customers to draw their deposits by check?
14. Distinguish general and special deposits.
15. Define check.
16. What kinds of banks do a checking business?
17. By what process may a depositor withdraw money from a savings bank?
18. Define a paid voucher.
19. When do banks return checks to their customers?
20. When are checks payable?
21. What should a customer do with paid checks when they are received from his bank?
22. When must checks be presented for payment?
23. Is a bank required to pay the checks of its depositors?
24. If a bank refuses to pay a check what, if anything, must the holder do to hold the maker liable?
25. Are national banks permitted to make loans on real estate?
26. Are savings banks permitted to make loans on real estate?
27. Define credit.
28. By what means is credit information furnished?
29. Distinguish credit and capital.
30. Are forged negotiable instruments void or voidable?
31. Is a bank liable for paying forged checks, or must the depositor whose signature is forged stand the loss?
32. If a forgery is not reported by a depositor until six months after it was committed, who must stand the loss?
33. Is a bank liable if it pays a bona fide holder a check payable to bearer?
34. Under what laws are national banks created?
35. Does the United States Constitution expressly provide for the creation of national banks?
36. What United States officer has supervision over national banks?
37. Are national banks furnished with circulating notes? If so, in what amounts?
38. In case of the bank's insolvency, what is the liability of national bank stockholders?
39. What rate of interest can national banks charge?
40. Can national banks buy and sell bonds?
41. What penalty is imposed upon national banks for usury?
42. Define and distinguish savings banks and trust companies.
43. Are clearing houses banks? What are the functions of clearing houses?
44. In what two ways is the term money used?
45. What is legal tender?
46. Are silver certificates legal tender?
47. Define discount.
48. Distinguish discount and purchase of negotiable paper.
49. Are banks permitted to purchase negotiable paper at a profit in excess of legal rates of interest?
50. Are individuals and business concerns permitted to purchase negotiable paper at a profit in excess of legal rates of interest.
51. Define exchange.
52. Distinguish foreign and domestic exchange.
53. Define interest.
54. Define and give an example of usury.
55. What is the usual penalty for usury?
INSURANCE
1. Define insurance.
2. Are insurance companies controlled by the legislatures of the states?
3. May an individual or a partnership enter into insurance contracts?
4. Is insurance business interstate commerce if transacted between citizens of different states?
5. May one state exclude insurance companies of another state from transacting business within its territory?
6. Does an insurance contract require all the elements of an ordinary contract?
7. In what way does an insurance contract differ from an ordinary contract?
8. How many parties are there to an insurance contract?
9. Define underwriters.
10. Define beneficiary.
11. Name the principal kinds of insurance written at the present time.
12. Define and give an example of insurable interest.
13. Must an insurance contract be in writing to be binding?
14. Are insurance contracts within the Statute of Frauds?
15. Define binder.
16. Define warranty as used in an insurance contract.
17. Distinguish warranty as used in insurance contracts from warranty as used in contracts of sale.
18. Define representation as used in connection with insurance contracts.
19. Distinguish warranty and representations.
20. Does breach of warranty avoid a contract of insurance?
21. Does breach of representation discharge an insurance contract?
22. Define life policy.
23. Define term policy.
24. Define tontine policy.
25. Define marine insurance.
26. What implied warranty enters into a policy for marine insurance?
27. Define general average.
28. Define standard policy.
29. If a policy of insurance contains no stipulation relative to suicide, and the insured takes the policy intending to commit suicide, and does commit suicide, is the policy enforceable?
30. If an insurance policy contains a suicide clause, and the insured commits suicide while insane, is the policy enforceable?
31. May an insurance company stipulate against suicide in such a manner as to avoid the policy if the insured suicides when insane?
32. Define and distinguish fidelity and casualty insurance.
33. What is re-insurance?
34. Is a company writing a policy of re-insurance liable to the party originally insured?
35. May a company re-insure at greater risk than it itself has insured? 36. Can a fire insurance policy be assigned before a loss has occurred?
37. Can a fire insurance policy be assigned after a loss has occurred?
38. Can a life insurance policy be assigned at any time?
39. Define and distinguish open and valued policies.
40. Define other insurance.
41. What limit, if any, is placed upon the amount of life insurance a person may take?
42. May a person insure personal property for more than its actual value?
43. If a person insures his house in three different companies for two-thirds of its value in each company, in case of loss how much an he recover, if anything, on each policy?
SURETYSHIP
1. Define suretyship.
2. Is a suretyship obligation a contract?
3. What contracts is the term suretyship used to designate?
4. How many parties are there to a suretyship contract?
5. Define principal.
6. Give an example of a suretyship contract.
7. Define promisor.
8. Define creditor to a suretyship contract.
9. Give the different technical names that may be applied to a promisor of a suretyship contract depending upon the nature of the liability.
10. Define surety.
11. Give an example of a contract of a surety.
12. Is the liability of a surety conditional upon that of his principal.
13. Define guarantor.
14. A promises a creditor of B to pay B's debt if B does not. Is A's contract that of a surety or of a guarantor?
15. In commercial practice what form of suretyship contract is most frequently used, that of a surety or of a guarantor?
16. Define indorser.
17. Is an indorser's contract found outside of negotiable instruments?
18. Is an indorser bound by any implied contract?
19. What are the warranties of an indorser?
20. Is consideration a necessary element of a contract of suretyship?
21. If a suretyship contract is part of the transaction which it secures must it be supported by a separate consideration?
22. Must any contracts of suretyship be in writing?
23. Is an oral contract of suretyship illegal?
24. What is meant by the Statute of Frauds as applied to suretyship contracts?
25. Define general guaranty.
26. Define limited guaranty.
27. Define special guaranty.
28. Define continuing guaranty.
29. What kinds of notice may a guarantor be entitled to?
30. When, if at all, is a guarantor entitled to notice of default of his principal?
31. When, if at all, is a guarantor entitled to notice of acceptance of his guaranty by a creditor?
32. If A is surety for B upon B's debt to C of $100.00 and B settles his debt with C for $50.00, can C hold A for the balance?
33. If A guarantees B's debt to C of $100.00 due one year and with interest at 6%, and B without A's consent reduces the interest to 5%, is A thereby discharged?
34. If A guarantees B's debt to C of $100.00 payable in one year, and C without A's consent extends the time of payment six months upon B's agreement to pay 6% interest, is A thereby discharged?
35. Is fraud practiced by the principal upon the promisor to a suretyship contract, a defense to the promisor in an action brought by the creditor?
36. In the absence of special statute can a promisor to a suretyship contract compel by notice a creditor to sue a principal?
37. Are surety companies favorites of the law?
38. Define subrogation.
39. Give an example of subrogation.
40. Define indemnity as applied to a suretyship contract.
41. A guarantees B's debt to C of $100.00 upon a promissory note. B defaults and A pays the debt. A then sues B for $100.00 upon the promissory note. Is this an example of indemnity or subrogation? May A sue B for $100.00 independently of the promissory note?
42. Define contribution.
43. A, B, and C guarantee B's debt to E of $300.00. D sues A and collects $100.00. Can A sue B and C for $33.33 each?
PERSONAL PROPERTY
1. Define personal property.
2. Classify personal property.
3. Distinguish chattels real from chattels personal.
4. Define and give an example of chose in action.
5. Define and give an example of chose in possession.
6. How may title to personal property be acquired?
7. May a person obtain title to personal property by finding it?
8. How can personal property be transferred?
9. Upon death of the owner, to whom does title to personal property pass?
SALES
1. Distinguish ownership and possession of personal property.
2. May title and possession of personal property be in different places?
3. Define sale.
4. How does a sale differ from a contract to sell?
5. A promises to deliver a car of coal to B the following month in consideration of B's promise to pay A $300.00 upon delivery of the coal. Is the transaction a sale or a contract to sell?
6. In a contract to sell, if the property is destroyed by fire before the property is delivered, who stands the loss?
7. Distinguish barter from sale.
8. A agrees to deliver to B one hundred bushels of apples for twenty tons of coal at $5.00 per ton. Is the transaction a sale or a barter?
9. Define conditional sale.
10. At the present time is a vendor of a conditional sale contract permitted to take possession of the property after 90% of the purchase price has been paid.
11. A leaves his automobile at B's shop for repairs. Is this transaction a sale?
12. Distinguish sale from bailment.
13. What kinds of personal property may be the subject of a sale?
14. May personal property to be manufactured be the subject of a present sale?
15. What is meant by the Statute of Frauds as applied to sales?
16. What contracts of sales must be in writing?
17. When must personal property sold be delivered?
18. In the absence of any express agreement as to delivery, when and by whom must personal property be delivered?
19. If a sale is made in which delivery is to be made in the future may title pass to the purchaser at once?
20. When does title pass to the purchaser in a sale of personal property?
21. Does the fact that delivery is to be made in the future, of itself, prevent title passing to the purchaser at the time the sale is made?
22. A sells a desk to B for $10.00, agreeing to revarnish the desk and deliver same to B the following Saturday. When does title to the desk pass to B?
23. What, if anything, does intention of the parties have to do with the passing of title to the purchaser?
24. In the absence of an express agreement when must the purchase price be paid?
25. Is the seller permitted to retain possession of the property sold until he receives the purchase price?
26. B, by means of fraud, purchases a bicycle from A. B sells it to C, who does not know of the fraud. Can A recover the bicycle from C?
27. A purchases a bicycle from B telling B that he is C. B knows C by reputation and thinks that he is selling to C. A sells the bicycle to D. Can B obtain possession of the bicycle from D?
28. Define Caveat Emptor.
29. Does the rule of Caveat Emptor apply if the seller expressly warrants the goods sold?
30. Define express warranty.
31. A sells a horse to B assuring B that the horse is perfectly sound. The horse has blemishes. Does A warrant the horse?
32. Define implied warranty.
33. Enumerate the most common implied warranties.
34. Does an implied warranty of title accompany every sale?
35. A purchases an automobile at a sheriff's sale. The automobile is mortgaged. May the mortgagee take the auto from A? If so, can A recover on an implied warranty from the sheriff?
36. What is meant by implied warranty of wholesomeness of food?
37. Does this warranty extend to any purchaser?
38. Give an example of an implied warranty in a sale by sample.
39. Does the implied warranty of merchantability apply when the goods are selected and inspected by the purchaser?
40. Give an example of a sale in which there is an implied warranty of fitness for the purpose for which the goods are to be used.
41. Does this implied warranty exist if the goods are constructed and furnished according to a model furnished by the buyer?
42. Define rescission of a contract.
43. May a contract of sale be rescinded for breach of warranty?
44. Generally, what is a purchaser's remedy for breach of warranty?
45. Define lien.
46. Give an example of seller's lien.
47. Define stoppage in transitu.
48. A, in Cleveland, orders goods of B in Chicago. B delivers the goods to the Adams Express Company, addressed to A. The goods are lost in a railway wreck. Who must bear the loss, A or B?
49. A sells a carriage to B. B refuses to pay for the same. If A has not delivered the carriage to B may he sue B for damages?
50. A purchases a carriage from B. A tenders the price, but B refuses to deliver the carriage. May A obtain possession of the carriage by legal action?
51. May A sue B for damages for refusing to deliver the carriage?
A CORNER IN THE NEW YORK EXECUTIVE OFFICE OF THE WESTERN ELECTRIC COMPANY
Occupying a Part of One Floor of the Marshall Field Building