Mary Lou takes her paycheck to Al's Place on Friday night and gives it to the bartender as payment for her running bar bill.If the company she works for goes bankrupt the following Monday,Mary Lou is liable for breach of warranty of no insolvency.

Question

Quizplus · Accepted Answer

Mary Lou giving her paycheck to Al's Place as payment for her bar bill does not create a warranty of no insolvency. The company she works for going bankrupt on Monday does not make her liable for breach of any warranty related to her payment of the bar bill.

Mary Lou Takes Her Paycheck to Al's Place on Friday