Peter Draws a Check on His Account in Third National

question 2

Multiple Choice

Peter draws a check on his account in Third National Bank payable to the order of Stella.When Peter draws the check,he gets Third National Bank to certify the check.Stella presents the check to Third National Bank for payment but the bank refuses to honor the check.What is the result?

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

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Definitions:

Management

The process of dealing with or controlling things or people, often within the context of a business or organization.

Proprietorships

Business entities owned by a single individual, who has full control over operations and takes on the liabilities of the business personally.

Services

Activities that provide value to customers without producing tangible goods, often characterized by expertise, advice, or labor.

Fraudulent Acts

These refer to intentional deceptions made for personal gain or to harm another individual, often illegal and punishable under law.