Drew Makes Out a Check Payable to Bill

question 4

Multiple Choice

Drew makes out a check payable to Bill.Bill alters the amount of the check from $10 to $100,and cashes the check at the local grocery store.The grocery store later cashes the check at the drawee bank,which deducts $100 from Drew's account.Drew learns of the alteration and complains to the bank.Which is true in this situation?

• A) The bank must recredit Drew's account for $90.
• B) The bank can collect from the grocery store for breach of presentment warranties.
• C) The grocery store can collect from Bill for breach of presentment warranties.
• D) A,B,and C are true.
• E) A and C only are true.

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Definitions:

Metal Rods

Long, thin pieces of metal used in a variety of construction and manufacturing applications.

Refrigeration

The process of removing heat from a space or substance to lower its temperature, often used for preserving food or other perishables.

Tax Returns

Official documents filed with tax authorities declaring income, profits, and losses to determine tax liability.

Post Office

A public institution responsible for mail collection, distribution, and delivery services.