Dale issues a check for $4,000, dated June 1, to Evelyn. The check is drawn on First Federal Bank. Evelyn indorses the check and transfers it to Gene. What will trigger the liability of Dale and Evelyn on the check?
What will be an ideal response?
In this question, Dale and Evelyn are secondarily liable parties. A party who is secondarily liable on an instrument promises to pay it only if the following events occur: (1) the instrument is properly and timely presented; (2) the instrument is dishonored; and (3) notice of dishonor is given in a timely manner to the party. Thus, to trigger Dale and Evelyn's liability, Gene will need to properly and timely present the check for payment to First Federal, which would have to dishonor the instrument, and Gene would then have to give timely notice to Dale and Evelyn.
You might also like to view...
Firms such as General Motors and McDonald's actively collect information about customer preferences and try to address them in their new products. General Motors and McDonald's are actively trying to adapt to
A. shareholder, customer, and market changes. B. social and political pressures. C. human resource concerns. D. managers' behavior. E. technological advancements
If A and B are independent events with P(A) = 0.5 and P(A ? B) = 0.12, then, P(B) =
A. 0.240. B. 0.060. C. 0.380. D. 0.620.
In order for quick response (QR) inventory planning to be effective, _____
a. inventory ordering costs need to be low b. inventory holding costs need to be low c. electronic data interchange must not be functioning d. shipping costs must be reduced
_______________ is a proactive influence tactic that makes a reciprocal or quid pro quo agreement which benefits both.
a. Ingratiation b. Exchange tactics c. Personal appeal d. Apprising