Uniform Commercial Code

NOTE: Examinees should assume that the 2001 revision to Article 1 has been adopted.

Negotiable Instruments (Commercial Paper)

I.          General UCC principles

A.     Rules of construction and application (§ 1-101, et seq.)

B.    General definitions and principles of interpretation (§ 1-102, et seq.)

II.         General provisions and definitions (§ 3-102, et seq.)

A.     Definitions (§ 3-103)

B.    Negotiable instrument, issue, unconditional promise or order (§§ 3-104 through 3-107)

C.    Payable on demand or at definite time
(§ 3-108)

D.    Payable to order or bearer; identification of payee (§§ 3-109, 3-110)

E.    Other terms (§§ 3-111 through 3-113)

F.     Contradictory terms; incomplete terms
(§§ 3-114, 3-115)

G.    Joint and several liability; contribution
(§ 3-116)

H.    Other agreements affecting instrument
(§ 3-117)

I.      Statute of limitations; notice of right to defend (§§ 3-118, 3-119)

III.        Negotiation, transfer, and indorsement (§ 3-201, et seq.)

A.     Negotiation, rescission, and transfer (§§ 3-201 through 3-203)

B.    Indorsements (§§ 3-204 through 3-206)

C.    Reacquisition (§ 3-207)

IV.        Enforcement of instruments (§§ 3-301 through 3-311)

A.     Person entitled to enforce; holder in due course (§§ 3-301, 3-302)

B.    Value and consideration (§ 3-303)

C.    Overdue instrument (§ 3-304)

D.    Defenses, claims in recoupment, and claims to an instrument (§§ 3-305, 3-306)

E.    Notice of breach of fiduciary duty (§ 3-307)

F.     Proof of signatures and status as holder in
due course (§ 3-308)

G.    Enforcement of lost, destroyed, or stolen instrument (§ 3-309)

H.    Effect of instrument on obligation for which taken; accord and satisfaction (§§ 3-310,
3-311)

V.         Liability of parties (§ 3-401, et seq.)

A.     Signature; signature by representative; un-authorized signature; impostors and fictitious payee (§§ 3-401 through 3-404)

B.    Employer’s responsibility for employee’s fraudulent indorsement (§ 3-405)

C.    Alteration; negligence contributing to forgery or alteration (§§ 3-406, 3-407)

D.    Drawee not liable on unaccepted draft (§ 3-408)

E.    Acceptance of draft, certified check;
acceptance varying draft (§§ 3-409, 3-410)

F.     Refusal to pay cashier’s, teller’s, and certified checks (§ 3-411)

G.    Obligations of issuer, acceptor, drawer, indorser (§§ 3-412 through 3-415)

H.    Transfer and presentment warranties
(§§ 3-416, 3-417)

I.      Payment or acceptance by mistake (§ 3-418)

J.     Instruments signed for accommodation
(§ 3-419)

K.    Conversion of instrument (§ 3-420)

VI.        Dishonor (presentment, dishonor, notice, excuse, evidence of dishonor) (§§ 3-501 through 3-505)

VII.       Discharge and payment (§§ 3-601 through 3-605)

A.     Discharge and effect of discharge (§ 3-601)

B.    Payment; tender of payment (§§ 3-602, 3-603)

C.    Discharge by cancellation, renunciation (§ 3-604)

D.    Discharge of indorsers, accommodation parties (§ 3-605)