Assets can qualify for the homestead exemption, where the homestead generally protected/exempted from bankruptcy.

“To be negotiable, the instrument must stand alone,” is true of negotiable instruments. 

Many contracts contain a liqidated damages provision that would use language like, “In the event either party breaches this agreement, the damages would only be $10,000.”  This prevents future ligation between the parties, but in no way can liqudated damages amount to a penalty. 

Under the UCC’s Statute of Frauds, unless the receiving merchant gives written notice of objection to the contents of a confirming memorandum within ten days after receipt, the writing is sufficient against the receiving merchant, even though he or she did not sign it. 

A debtor is not protected in bankruptcy for fraud. An example of fraud is transferring property to a relative where the debtor still runs and uses it.

Gabe gives Mary a note that states, “I promise to pay you $200,000,” as a gift, and Mary accepts the note.  No consideration is given in return for Gabe’s promise (because it is a gift) yet a court will enforce the promise.  

The rights of a “Holder in Due Course,” include the right to: __________________________.

For involuntary bankruptcy petitions, where creditors force a debtor into bankruptcy, if you have less than ____ creditors, one can force you into bankruptcy for $15,325 in debt (changes every three years).

To _________________ an offer, express language must be used, such as, “I withdraw my previous offer of May 7,” or by performance of acts that are contrary to the offer and made to the offeree (for example, selling the offered property to another with the original offeree present

Joe, a used-car dealer, emails a letter to Jane on January 1, stating, “I have a well-kept 1987 Buick Regal Grand National on the lot that I’ll sell you for $100,000 any time between now and January 31.”  This email creates a firm offer, and Joe will be liable for breach if he sells to another person before Jan. 31.  This is known under the UCC as a _______________________.