Peter Draws a Check on His Account at Wright Bank

question 39

Multiple Choice

Peter draws a check on his account at Wright Bank payable to the order of Stella. Peter asks Wright Bank to certify the check and the bank certifies it. Stella presents the check to Wright Bank for payment. Which of the following statements is true of this case?

• A) Wright Bank becomes primarily or absolutely liable on the check.
• B) Peter is primarily liable on the check.
• C) Wright Bank is secondarily liable on the check.
• D) Wright Bank has no contractual liability on the check whatsoever.

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Definitions:

Desirable Social Qualities

The traits or characteristics that are generally appreciated and sought after in social interactions and contexts, such as kindness, empathy, and respectfulness.

LMX Theory

Stands for Leader-Member Exchange Theory, suggesting that leaders develop unique one-to-one relationships with each of the people reporting to them.

High-Exchange Relationship

A type of relationship between leader and follower characterized by high levels of trust, respect, and mutual obligation.

Dual Roles

Situation where an individual or entity is expected to perform two distinct sets of obligations or functions, often simultaneously.