Question
Aaron gives a check in the amount of $1,000 to Ben.The check is drawn on Aaron's personal checking account at Zenith Bank.Ben negotiates the check
Aaron gives a check in the amount of $1,000 to Ben.The check is drawn on Aaron's personal checking account at Zenith Bank.Ben negotiates the check to Cindy by indorsing the back of the check with his name.Cindy sells the check to Dan, but only receives $900 for the check.Cindy's endorsement is a qualified endorsement.Dan deposits the check into his bank account at Yinzmeister Bank.His indorsment is a restrictive indorsement.Dan's bank attempts to collect the check, but when the check is presented to Zenith, it is dishonored as Aaron does not have enough funds to cover the check.Yinzmeister is notified on Tuesday morning of the dishonor.
a. What type of indorsement did Ben provide?
b. What additional wording would accompany Cindy's signature on her indorsement?
c. What additional wording would accompany Dan's signature on his indorsement?
d. When must Yinzmeister notify Dan of the dishonor of Aaron's check?
e. Of Aaron, Bob, Cindy, Zenith Bank, and Yinzmeister Bank, who is primarily responsible for the check?Which of these parties has secondary liability?Is there any party who does not have any responsibility?
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