Quincy draws a check payable to "Replay Stadium" to buy two season tickets to the next year's State College football games. This instrument is
A) a bearer instrument.
B) an order instrument.
C) nonnegotiable.
D) void.

Question

Quincy draws a check payable to "Replay Stadium" to buy two season tickets to the next year's State College football games. This instrument is
A) ​a bearer instrument.
B) ​an order instrument.
C) ​nonnegotiable.
D) ​void.

Quizplus · Accepted Answer

The check payable to "Replay Stadium" is an order instrument because it is specifically addressed to Replay Stadium and requires their endorsement to transfer the funds. It is not a bearer instrument because it is not made out to a specific person or entity and it is not nonnegotiable or void.

Quincy Draws a Check Payable to "Replay Stadium" to Buy