Which of the Following Is True in Most States Regarding

question 54

Multiple Choice

Which of the following is true in most states regarding Bernie's concern that Hank could not be sued for the price of the skateboards?

• A) Hank cannot be sued if Hank purchased the skateboards within 30 days of the joining of the businesses.
• B) Hank can be sued only if Hank purchased the skateboards within 30 days of the joining of the businesses.
• C) Hank cannot be sued unless Hank approves in writing the joining of the businesses.
• D) Hank can be sued only if Hank is notified by certified letter of the joining of the businesses.
• E) The right to sue Hank would not be lost by the joining of the corporations.

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Definitions:

Transfer

The act of moving or passing from one person, place, or situation to another, often referring to the ownership or title of property or assets.

Checks

Financial instruments that order a bank to pay a specific amount of money from the writer’s account to the person or entity in whose name the check has been issued.

Depositary Bank

The first bank that receives a check for payment.

Collecting Bank

Any bank, with the exception of the payor bank, that handles a check during the check collection process.