34. Nero signs a check "pay to the order of Olive" drawn on Nero's account at Peachtree Bank Olive signs the back of the check. Secondary liability on this check extends to: (a) Nero and Olive only. (b ) Nero and Peachtree Bank only (c) Nero only (d) Peachtree Bank only. (e) None of the above. 35. Audio Inc.'s agent, Bailey is authorized to draw checks on Audio Inc.'s account at Citizen's Bank. The checks are pre-printed with the company name. Baily writes a check "pay to the order of Darlene." Signed Bailey, Secretary. Darlene presents the check for payment. If Citizen's Bank dishonors it, liability extends to: (a) No one. (b) Audio Inc. and Bailey (c) Audio Inc. (d) Bailey only (e) None of the above 36. Quincy signs a check payable to Richland Investors Inc. and gives it to Richland, leaving the amount blank but authorizing Richland to fill in the check for $1,000. Richland fills in the check for $ 1,500 and negotiates the check to Silverado Bank to whom Richland owes $ 1500. Silverado Bank, an HDC, can enforce the check for: (a) $0. (b) S 500 (c) $1,000 (d) $1,500 (e) None of the above. 37. Sharon issues a check drawn on Thrifty Bank to United Office Supply to pay for six computer desks. Later, Sharon discovers defects in the desks and orders Thrifty Bank to "stop payment on the check in writing. 8 months later, the check is presented for payment and honored by Thrifty Bank. The Bank : (a) must re credit Sharon's account (b) must obtain funds from United Office Supply to cover the amount of the check. (c) must insist that Sharon be provided with acceptable goods. (d) need not re credit Sharon's account (e) None of the above 38. Ronald writes a check for $ 700 to Sally. Sally indorses the check in blank and transfers it to Tom who alters the check to read $ 7,000 and presents it to Union Bank, for payment. The bank cashes the check. Later, Ronald discovers the alteration and files a lawsuit against the bank. Ronald can recover: (a) $ 7,000 (b) $ 6,300 (c) $ 700 (d) $0 (e) None of the above