Asked by Martevus Blount on Jun 03, 2024
Verified
Anya issues a check payable to Bo, who indorses the back, gives it to Credit Union, and receives cash. The transfer of the check from Bo to Credit Union is
A) an assignment.
B) a negotiation.
C) a payment.
D) a sale.
Negotiation
The process whereby parties discuss their differences and attempt to reach a mutually agreeable resolution.
Indorses
Endorses or signs the back of a financial instrument (such as a check) to transfer rights to another party.
Credit Union
A member-owned financial cooperative that provides banking services, including savings and loan facilities, to its members.
- Comprehend the fundamental prerequisites for the negotiation of checks and negotiable instruments.
- Determine the functions and duties of the entities engaged in the creation, exchange, and settlement of negotiable instruments.
Verified Answer
CN
Christopher NallsJun 07, 2024
Final Answer :
B
Explanation :
The transfer of the check from Bo to Credit Union, especially after Bo indorses the back of the check, is a negotiation. Negotiation is the process in commercial law by which a negotiable instrument such as a check is transferred from one person to another in such a manner that the recipient becomes the holder of the instrument.
Learning Objectives
- Comprehend the fundamental prerequisites for the negotiation of checks and negotiable instruments.
- Determine the functions and duties of the entities engaged in the creation, exchange, and settlement of negotiable instruments.