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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.

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