Brad Wrote a Check to Clara for $1,000 on His

question 33

Multiple Choice

Brad wrote a check to Clara for $1,000 on his account at First Bank.He then took it to his bank for certification.The bank wrote "certified" on the face of the check.Brad then gave the check to Clara.When Clara took the check to First Bank,they refused to pay,claiming that there was not enough money in Brad's account to cover the check.Which of the following is correct?

• A)First Bank is primarily liable on the check, because it has already accepted it.
• B)Clara has no recourse under the circumstances.
• C)Brad is secondarily liable on the check, because he is the drawer.
• D)Two of the above, (a) and (c), are correct.

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Definitions:

Filtering

The process of modifying or withholding information as it passes through different levels or channels within an organization, which can distort the message received.

Encoding

The process of transforming thoughts or feelings into a form that can be understood by others, often in language or symbols.

Writing a Letter

The process of composing a message on paper, typically for communication or to convey a specific intention to the recipient.

Chain of Command

A system in organizations outlining the line of authority and responsibility from the top levels of management to the lowest levels of operation, ensuring clear assignment of tasks and accountability.