APPENDIX B: ALTERNATE CASE PROBLEM ANSWERS—CHAPTER 25 B-3
25-6A. Negotiable versus nonnegotiable instruments
If the instrument was a bearer instrument, then Broadway’s possession qualified it as a holder.
If it was an order instrument, wherein a specifically named payee must be determined upon the
25-7A. Negotiability
Regent filed a motion for summary judgment, which the court granted. The court found that each
draft declared on its face that it was payable a specified number of days after the bill of lading
date, which was on another writing. For this reason, the drafts were nonnegotiable instruments.
On appeal, a state intermediate appellate court reversed this part of the judgment. The court
3–114 indicates that words control figures unless the words are ambiguous, and handwritten
terms control typewritten and printed terms, and typewritten control printed. The question here
was whether handwritten figures control printing. The court explained that “the purposes of the
U.C.C. are best served by considering an amount imprinted by a checkwriting machine as
‘words’ for the purpose of resolving an ambiguity between that amount and an amount entered