Personnel Company draws a check payable to Felix. Felix indorses the back and negotiates the check to Guaranty Bank. Primarily liable on the check is
A) Personnel Company.
B) Felix.
C) Guaranty Bank.
D) none of these.

Question

Quizplus · Accepted Answer

Primarily liable on a check is the drawer, which in this case is Personnel Company. However, since the question asks for who is primarily liable after the check has been negotiated to Guaranty Bank, none of the options provided are correct because the drawer remains primarily liable until the check is paid.

Personnel Company Draws a Check Payable to Felix