Joni writes Keizer an uncertified check for $500 drawn on Joni's account at Labor Employees Credit Union. Seven months later, Keizer presents the check for payment. The credit union pays the check in good faith without consulting Joni. The credit union
A) cannot charge Joni's account for any amount.
B) can charge Joni's account for $250 only.
C) can charge Joni's account for $500.
D) is liable for breach of contract.

Question

Joni writes Keizer an uncertified check for $500 drawn on Joni's account at Labor Employees Credit Union. Seven months later, Keizer presents the check for payment. The credit union pays the check in good faith without consulting Joni. The credit union​
A) ​cannot charge Joni's account for any amount.
B) ​can charge Joni's account for $250 only.
C) ​can charge Joni's account for $500.
D) ​is liable for breach of contract.

Quizplus · Accepted Answer

Under the Uniform Commercial Code, a bank or credit union generally has the right to charge the account of the person who wrote the check (Joni) for the full amount of the check, even if it has been several months since the check was written. Therefore, the credit union can charge Joni's account for $500.

Joni Writes Keizer an Uncertified Check for $500 Drawn on Joni's