Course Number: 6570
Professor: Dee Pridgen
Credit Hours & Type of Credit: 3
Semester Offered: Fall
Prerequisites: Students must have completed their first year of law school.
Recommended Courses: None
Course Overview: The Payment Systems course (formerly Commercial Paper) focuses on the use of negotiable instruments (such as checks, drafts, promissory notes, and certificates of deposit) to document debts and to make payments. The course provides an overview of the banking system, the check collection process, and the use of various commercial instruments. Topics include liability for stolen checks, forged signatures, alterations, payment to impostors, insufficient funds, stop payment orders, post-dated checks, and restrictive endorsements. In addition, the rights of good faith purchasers are examined and the use of third parties (such as guarantors, sureties, and accommodation parties) to secure obligations are discussed.
The rules governing these transactions are set forth in Articles 3 and 4 of the Uniform Commercial Code and the Federal Reserve System regulations. The course emphasizes the use and understanding of the Uniform Commercial Code and the Federal Reserve System regulations. Problems are employed to examine legal issues in a realistic commercial context.
Payment Systems (also referred to as Commercial Paper or Negotiable Instruments Law) is a bar examination subject in the vast majority of states, including Wyoming and Colorado.
Course Materials: See the current Book List located under Courses and Curriculum.
Course Format: A problem approach is used in this course to reinforce an understanding of the legal doctrines and to emphasize the practical effect of commercial transactions and payment systems law on a lawyer's day-to-day practice.
The course is designed to address issues relevant to those students who wish to practice transactional law, as well as those who anticipate a career in commercial litigation or as a general practitioner.
Written Assignments: None
Type of Exam: Two-hour exam; one essay and 15 multiple-choice.
Basis for Grading Student Performance: 90% based on final exam; 10% attendance and class participation.
Other Comments: Payment Systems is taught during the first two-thirds of the semester. Both second and third year students are welcome to enroll. Historically, the class has been composed of both second and third year students.