Asked by Taira DeSutter on May 29, 2024
Verified
Raul wants to transfer a check to Schmidt. The check is defective if it
A) is clearly stamped "insufficient funds."
B) contains handwritten terms.
C) is undated.
D) is payable to alternative or join payees.
Defective
Describing a product or good that fails to meet quality standards or does not function as intended.
Insufficient Funds
a situation where an account does not have enough money to cover a transaction, often leading to denied payments or penalties.
Handwritten Terms
Handwritten terms are provisions or conditions manually written in a contract or agreement, which can add specificity or clarity to the document's stipulations.
- Pinpoint critical factors affecting the transferability and negotiability of instruments, such as checks and notes.
- Investigate the impact of anomalies and shortcomings on the condition of HDC and the transferability of financial instruments.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
A
Explanation :
A check is considered defective if it is clearly stamped "insufficient funds," as this indicates the drawer's bank account does not have enough money to cover the amount of the check, making it non-negotiable or problematic for the payee.
Learning Objectives
- Pinpoint critical factors affecting the transferability and negotiability of instruments, such as checks and notes.
- Investigate the impact of anomalies and shortcomings on the condition of HDC and the transferability of financial instruments.