Book Opener

Consider the key terms in the list below. Then use these terms tocomplete the following exercises.holder in due courseholdervaluegood faithshelter provisionpersonal defensesreal defensesprimary liabilitysecondary liabilitypresentmentdishonor1. Write a letter to a bank explaining recent problems you have hadwith a negotiable instrument.2. Role-play with a partner how the banker may respond to yourletters. As the banker, make sure to address all the terms used inthe letters.3. Practice your role-play activities until you and your partner feelcomfortable.4. Present your role-play activities to the class. If possible, dress incostumes and use appropriate props.5. After you have finished delivering your role-play activities, askyour classmates for constructive criticism.6. Reflect on you could have improved your role-play activities.Self-Check Quiz Visitthe UnderstandingBusiness and PersonalLaw Web site atubpl.glencoe.com andclick on Chapter 26:Collecting NegotiableInstruments—Self-CheckQuizzes to prepare forthe chapter exam.Answer the following questions. Refer to the chapter for additional reinforcement.7. When is value for an instrument given?8. Explain what it means to be a “holder through a holder in due course.”9. Can personal defenses be used against holders in due course? Why orwhy not?10. What are the three conditions that must be met for secondary liability?11. Banks that take instruments for collection must give notice of dishonorby when?12. What is good faith?13. Describe the shelter provision.14. What is fraud in the inducement?15. What might a person be requested to do when making presentment ofan instrument?Chapter 26: Collecting Negotiable Instruments 573