With Instruments Payable at a Definite Time, Revised Article 3

question 17

Multiple Choice

With instruments payable at a definite time, Revised Article 3 of the Uniform Commercial Code requires that if:

• A) the principal is not payable in installments and the due date has not been accelerated, the instrument is overdue on the day after the due date.
• B) the principal is due in installments and a due date has not been accelerated, the instrument is overdue on the day after the due date.
• C) a due date for the principal has been accelerated, the instrument is overdue upon default.
• D) there is a default in payment of the interest but no default in the payment of principal, the instrument becomes overdue.

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Definitions:

Package Carrier

A company or service that specializes in the delivery of parcels and documents from one location to another.

Drop-Shipping

A product fulfillment strategy in retail where the store doesn't maintain an inventory of the items it sells. Rather, upon selling a product, the store orders it from a third party and arranges for it to be delivered straight to the buyer.

Manufacturer Storage

A logistics strategy where the manufacturer holds stock, typically in a warehouse, until it is ordered by retailers or customers.

Last Mile Delivery

The final step of the delivery process from a distribution center or facility to the end customer's destination, often seen as key to customer satisfaction and efficiency in logistics.