Asked by Ogbonna Chris on Apr 26, 2024
Verified
Industries Inc.drew a check payable to "Gloria Schell and Pippen Tallit" in the sum of $20,000.For a proper negotiation,the check needs to be indorsed:
A) only by Gloria Schell,since her name appears first.
B) by either payee,since the indorsement of only one of the payees is necessary to negotiate the check.
C) by both payees.
D) by the maker.
Payee
A payee is the individual or entity to whom a payment is made, typically named or designated in a financial transaction document.
Negotiation
The transfer of a negotiable instrument in such form that the transferee becomes a holder.
- Grasp the correct procedures for endorsing checks and the effects of endorsement orders on negotiability.
Verified Answer
AP
Ashley PerrineApr 27, 2024
Final Answer :
C
Explanation :
In order to properly negotiate a check made payable to multiple payees, all payees must endorse the check. In this case, both Gloria Schell and Pippen Tallit must endorse the check in order for it to be properly negotiated.
Learning Objectives
- Grasp the correct procedures for endorsing checks and the effects of endorsement orders on negotiability.
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