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[The Furniture Shop] Chloe Writes a Check for Some Furniture

Question 58

Multiple Choice

[The Furniture Shop] Chloe writes a check for some furniture to The Furniture Shop, a small specialty furniture shop whose shares are owned primarily by Rabia. Rabia decided to go on an extended European vacation and temporarily closed down the shop the day after Chloe wrote the check. When Rabia returned, she had a number of other things to do and did not take Chloe's check and some other checks to the bank for three months. Rabia was independently wealthy and only ran the shop as a hobby, so she had not been in need of funds. When Rabia finally took Chloe's check to the bank, Rabia requested that her bank, ABC Bank, deposit the check into her account. When ABC Bank, however, requested payment from Chloe's bank, XYZ Bank, the check was dishonored because of insufficient funds in Chloe's account. Although Rabia did not particularly need the funds, she did not like to feel as if she had been cheated; therefore, she demanded that Chloe make the check good.
-Who is the drawer of the check Chloe presented to Rabia at The Furniture Shop?


A) Chloe
B) The Furniture Shop
C) Rabia, as primary owner of The Furniture Shop
D) Chloe's bank.
E) Rabia's bank.

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