Reference - Yard Mowing

question 103

Multiple Choice

Reference - Yard Mowing. Paula agreed to mow John's yard once a week for $50 per week throughout the summer. Paula, however, was having trouble getting her money from John. On one occasion, he in handwriting gave her an IOU stating "I, John Jones, owe Paula Smith $50" which he signed at the end. A couple of weeks later, John did not have the money with which to pay Paula for additional mowing, and he handwrote the following on a piece of paper and gave it to her: "I, John Jones, promise to pay Paula Smith or to bearer, the sum of $100 on Monday, July 22, 2012." Paula quit mowing John's yard, and disgusted with John, Paula assigned both documents to Vince. When Vince presented the documents to John, John refused to pay on the basis that after inspecting the yard, he decided that Paula was doing a poor job. Vince told him the documents constituted negotiable instruments, but John disagreed. Which of the following is true regarding whether the handwritten statement "I, John Jones, owe Paula Smith $50" coupled with the signature of John Jones is sufficient to constitute a negotiable instrument?

• A) The instrument is negotiable because John Jones signed following the statement of debt.
• B) The instrument is negotiable regardless of whether John Jones additionally signed following the statement of debt.
• C) The instrument is negotiable only so long as Paula Smith does not attempt to transfer the document to anyone.
• D) The instrument is not negotiable because the amount due to Paula was overdue when the IOU was made.
• E) Acknowledging a debt through an IOU does not create an unconditional promise or order to pay.

Understand the fundamental processes of testing a scientific hypothesis in psychology.

Grasp the concept of independent and dependent variables in experimental design.

Recognize the significance of non-experimental methods in social psychology research.

Identify field experiments and their applications in studying human behaviors.

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Definitions:

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares at certain times during their life, usually at the discretion of the bondholder.

Bearer Bonds

A type of fixed-income security that is owned by the holder or bearer, instead of being registered to a specific owner.

Sinking Fund Bonds

Bonds that include a provision for the issuer to create a fund for repaying the bond principal at or before maturity.

Term Bonds

Bonds that have a specific maturity date on which the principal is due to be paid to bondholders.