Chad writes Dinah an uncertified check for $500 drawn on Chad's account at Employees Credit Union. Seven months later, Dinah presents the check for payment. The credit union pays the check in good faith without consulting Chad. The credit union
A) cannot charge Chad's account for any amount.
B) can charge Chad's account for $250 only.
C) can charge Chad's account for $500.
D) is liable for breach of contract.

Question

Quizplus · Accepted Answer

The credit union can charge Chad's account for $500 because the check was presented within a reasonable time frame, and the credit union acted in good faith by paying it.

Chad Writes Dinah an Uncertified Check for $500 Drawn on Chad's