A Draft Is Payable "To the Order of Joe Jones

question 8

Multiple Choice

A draft is payable "to the order of Joe Jones or to bearer." Sally finds it and demands payment. Should the drawer pay Sally?

• A) No, unless Joe Jones's name is crossed off.
• B) No, unless "bearer" is handwritten.
• C) Yes, since the word "or" is contained in the instrument, either Joe Jones or the bearer of the draft may obtain payment.
• D) No, the terminology is ambiguous and therefore the draft must be paid only to the order of Joe Jones.

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Definitions:

Alimentary Canal

The alimentary canal is the whole passage along which food passes through the body from mouth to anus, including the esophagus, stomach, and intestines, digesting and absorbing food along the way.

Esophagus

The muscular tube that transports food from the throat to the stomach by a series of coordinated muscle movements.

Oral Cavity

The mouth’s interior space, including the lips, gums, front portion of the tongue, and teeth, which plays a role in speech, digestion, and respiration.

Splenic Flexure

The part of the large intestine that connects the transverse colon to the descending colon, located near the spleen.