Asked by Olympia Thompson on Jun 15, 2024

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Hot Dress.Doreen writes a check for a dress to Hot Dresses,Inc.,a small specialty shop owned primarily by Betty.Betty was getting ready to go on an extended European vacation and temporarily closed down the shop the day after the dress sale to Doreen.When Betty returned,she had a number of other things to do and did not take Doreen's check and some other checks to the bank for three months.Betty was independently wealthy and only ran the shop as a hobby,so she had not been in need of funds.When Betty finally took Doreen's check to the bank,Betty requested that her bank,ABC Bank,deposit the check into her account.When ABC Bank,however,requested payment from Doreen's bank,XYZ Bank,the check was dishonored because of insufficient funds in Doreen's account.Although Betty did not particularly need the funds,she did not like to feel as if she had been cheated; therefore,she demanded that Doreen make the check good.As defined by the Uniform Commercial Code,which of the following actions constituted presentment?

A) When Doreen issued the check to Hot Dresses,Inc.
B) When Betty took the check to ABC Bank
C) When ABC Bank requested payment from XYZ Bank
D) When XYZ Bank notified Betty that it would not pay due to insufficient funds
E) When Betty requested that Doreen to make good on the check

Negotiable Instrument

A paper that promises to pay a certain sum of money, which can be demanded at any time or paid at an agreed moment, and identifies the individual responsible for the payment.

Presentment

The act of making a demand for the drawee to pay.

Dishonored

refers to a financial instrument, like a check, being refused by the bank upon presentation for payment due to insufficient funds or other reasons.

  • Grasp the process of presentment and the implications of delayed banking transactions on negotiable instruments.
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Verified Answer

AH
Ameena HaleyJun 16, 2024
Final Answer :
C
Explanation :
According to Uniform Commercial Code Section 3-501(a),presentment is defined as making a demand for the drawee to pay.