Although a Drawer Has Stopped Payment on a Check, the Drawer

question 12

True/False

Although a drawer has stopped payment on a check, the drawer still may be held liable on the check unless the drawer has a defense that will defeat the holder in a lawsuit.

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Definitions:

Parent Corporation

A corporation that owns all of the shares of another corporation (known as its subsidiary).

Holding Company

A type of corporation that owns enough voting stock in another company to control its management and policies.

Share Exchange

A transaction in which shares of one company are exchanged for shares of another company, often used in mergers and acquisitions.

Shares Acquisition

A process in which an individual or entity purchases a portion of the shares of a company, ostensibly gaining ownership and possibly influencing control over the company.