Anya issues a check payable to Bo, who indorses the back, gives it to Credit Union, and receives cash. The transfer of the check from Bo to Credit Union is
A)an assignment.
B)a negotiation.
C)a payment.
D)a sale.

Question

Quizplus · Accepted Answer

The transfer of the check from Bo to Credit Union, especially after Bo indorses the back of the check, is a negotiation. Negotiation is the process in commercial law by which a negotiable instrument such as a check is transferred from one person to another in such a manner that the recipient becomes the holder of the instrument.

Anya Issues a Check Payable to Bo, Who Indorses the Back