Ruiz writes a check drawn on his account at Security Bank and payable to the order of Twyla. The bank does not pay the check. Ruiz is
A)absolved of liability on the check.
B)liable to the payee for the amount of the check.
C)liable to the bank for the amount of the check.
D)entitled to payment of the amount of the check from the payee.

Question

Quizplus · Accepted Answer

Ruiz, as the drawer of the check, is liable to Twyla, the payee, for the amount of the check if the bank refuses to pay it. This is a fundamental principle of negotiable instruments law, where the drawer guarantees payment to the payee.

Ruiz Writes a Check Drawn on His Account at Security