Rubin writes a check drawn on his account at Clearwater Bank and payable to the order of Gwyn. The bank does not pay the check. Rubin is
A) absolved of liability on the check.
B) liable to Gwyn 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 Gwyn.

Question

Rubin writes a check drawn on his account at Clearwater Bank and payable to the order of Gwyn. The bank does not pay the check. Rubin is​
A) ​absolved of liability on the check.
B) ​liable to Gwyn 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 Gwyn.

Quizplus · Accepted Answer

As the drawer of the check, Rubin is responsible to ensure that there are sufficient funds in his account to cover the amount of the check. If the bank did not pay the check, it suggests that Rubin did not have sufficient funds, and he is therefore liable to Gwyn for the amount of the check.

Rubin Writes a Check Drawn on His Account at Clearwater