Quito Writes a Check to Roy on Quito's Account at Sterling

question 59

Multiple Choice

Quito writes a check to Roy on Quito's account at Sterling Bank. The bank dishonors the check because Quito has insufficient funds in his account. The bank is liable to

• A)Quito.
• B)Roy.
• C)Quito, Roy, and the payees on Quito's subsequent checks.
• D)no one.

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Definitions:

Affiliated Directors

Affiliated directors are board members who have a relationship with the corporation outside of their directorship, which may influence their decisions, such as being an employee, supplier, or significant shareholder.

Publicly Held Corporation

A corporation whose shares are publicly traded on stock exchanges and owned by members of the public.

Revised Act

Legislation that has been updated or amended to incorporate new information, correct errors, or reflect changes in law or policy.

Derivative Suit

A lawsuit brought by a shareholder on behalf of a corporation against a third party, often the corporation's executives or directors, for wrongs committed against the corporation.