Under Article 3 of the UCC, a Draft Is

question 18

Multiple Choice

Under Article 3 of the UCC, a draft is:

• A) an unconditional written order to pay that involves two parties: drawer and payee; the payment is "on demand" only
• B) an unconditional written order to pay that involves three distinct parties: drawer, drawee, and payee; the drawee must be a bank; payment must be "on demand"
• C) a promise by one party to pay a certain sum of money to another party; two parties are involved: the maker and the payee; payment may be set at some time in the future
• D) an acknowledgment by a bank that it has received money from a customer with a promise from the bank that it will repay the money received at a specified date or upon demand; two parties are involved: a maker and a payee
• E) none of the other choices

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Definitions:

Merchandise to Customer

The process of selecting, packaging, and delivering goods to buyers as part of sales operations.

Inventory Shrinkage

The loss of products between purchase from the supplier and sale to the customer, often due to theft, damage, or errors in inventory management.

Theft

An act of stealing; unlawfully taking another's property without their consent.

Damage

The physical harm or impairment to property or goods, potentially leading to financial loss or liability.