Firms that generally do not deal directly with the public and ...

[nummyann]

Firms that generally do not deal directly with the public and instead handle transactions for brokers are known as:
 a. specialist firms b. private firms
  c. broker firms
  d. unregulated firms e. specialty firms

Question 2

Bearer Instruments. Gilbert Ramirez claimed that he had purchased a winning lottery ticket, the prize for which was approximately 1.5 million. Unfortunately, Ramirez had lost the ticket itself and therefore could not claim the prize. Even though the evidence indicated that he very likely was indeed the purchaser of the winning ticket, under the state lottery rules, he could not claim the prize unless he produced the winning ticket. In a legal action brought by Ramirez against the state lottery bureau, Ramirez claimed, among other things, that the lottery ticket was a negotiable instrument because on the back of each lottery ticket were the following words: THIS TICKET IS A BEARER INSTRUMENT SO TREAT IT AS IF IT WERE CASH. Because the owner of a lost negotiable instrument can collect on the instrument if certain requirements are metsuch as establishing proof of ownership, the terms of the instrument, and so onRamirez argued that he should be allowed to claim the prize if he could meet these requirements. Discuss fully whether Ramirez will succeed in his claim that the lottery ticket was a negotiable instrument.

[mcinincha279]

Answer to Question 1

a

Answer to Question 2

Bearer instruments
The court held that lottery tickets were not governed by the UCC but by the state lottery statute, which applied even though the UCC applies to commercial transactions in general. Because the lottery statute required that presentment of the winning ticket was a condition precedent to winning the lottery prize, Ramirez was not eligible to collect the prize. The court noted that even if lottery tickets were governed by the UCC, the ticket would not fall within the definition of a negotiable instrument because it was not signed by the maker or drawer, did not contain an unconditional promise or order to pay a sum certain in money, and was not payable on demand or at a definite time. Even if the lottery ticket were governed by the UCC and had met all these requirements, the fact that the player agrees when purchasing the ticket to present the ticket before payment will be required would constitute an enforceable contractual term that would bar Ramirez's recovery.