Asked by
Chelsea Taylor
on Nov 28, 2024
Verified
Lon is Mill Corporation's agent and is authorized to write checks on the firm's account in North Bank. Lon writes a check "pay to the order of Ocean Shipping." Lon signs the check "Mill Corporation by Lon, agent." The bank dishonors the check. Liability extends to
A) Lon.
B) Ocean Shipping.
C) Mill Corporation.
D) North Bank.
Authorized Agent
An individual or entity that is officially permitted to act on behalf of another person or organization.
Dishonors
Refers to the refusal by a bank to pay the amount stipulated in a check or draft when presented.
- Acquire insight into the roles and obligations of parties engaged with negotiable instruments.
- Examine the liabilities associated with participants in the creation, dissemination, and refusal of negotiable instruments.
Verified Answer
GS
Learning Objectives
- Acquire insight into the roles and obligations of parties engaged with negotiable instruments.
- Examine the liabilities associated with participants in the creation, dissemination, and refusal of negotiable instruments.