Farnsworth Has an Instrument Which Was Made "Payable to Bearer

question 43

Multiple Choice

Farnsworth has an instrument which was made "Payable to bearer." She loses the instrument, but it is found by Mellon. Mellon may

• A) collect payment on the instrument.
• B) not collect payment because he gave no value for it.
• C) not collect payment on the instrument because he only found it.
• D) none of these.

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Definitions:

Selling Price

The amount of money charged to the buyer for a product or service, typically set above the cost to include a profit margin.

Credit Terms

The conditions under which a seller will extend credit to a buyer, including the repayment period, interest rate, and the amount of payment.

Net 20

A payment term indicating that the full payment is due within 20 days from the invoice date.

2/10

A common trade credit term indicating a 2% discount if payment is made within 10 days; otherwise, the full amount is due in 30 days.