Fact Pattern 17-2 Lisa Writes a Check on Her Account at Metro Bank

question 29

Multiple Choice

Fact Pattern 17-2
Lisa writes a check on her account at Metro Bank to Niklas to pay a debt. Niklas negotiates the check by indorsement to O'Leary, who presents it for payment to Prime Bank.
-Refer to Fact Pattern 17-2.If Prime Bank dishonors the check, O'Leary can obtain payment from Niklas​

• A) ​if O'Leary timely notifies Niklas.
• B) ​only if Lisa refuses to pay the check.
• C) ​only to the extent that Lisa overpaid her debt to Niklas.
• D) ​under no circumstances.

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Definitions:

E-Purchasing

The process of buying goods and services via electronic means, particularly through the internet, for businesses or personal use.

Vertical Integration

A strategy where a company expands its business operations into different steps on the same production path, such as a manufacturer owning its supplier and/or distributor.

Make-Or-Buy Analysis

An evaluation process used in business to determine whether products, parts, or components should be produced in-house or purchased from an external supplier.

Supply-Chain Strategies

Plans and methods developed to manage and improve the flow of goods and materials, information, and finances across the supply chain.