Question
Alice buys Betty's sofa for $500 and pays be check. Alice makes the check out to the order of Betty and signs it. Instead of
Alice buys Betty's sofa for $500 and pays be check. Alice makes the check out to the order of Betty and signs it. Instead of depositing ("cashing") the check, Better indorses it and negotiates it to Cindy as payment on Betty's account at the antique mall. Cindy then deposits the check to her bank for payment, but the check is dishonored because Alice has insufficent funds to cover the check. Which of the following is MOST CORRECT
A) Cindy can recover the $500 from Alice
B) Cindy can recover the $500 from Better
C) Betty is liable to Cindy because she indorsed the check
D) All of the above are correct.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started