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To Pay for a Minor Repair,May Writes a Check for $50

Question 25

Multiple Choice

To pay for a minor repair,May writes a check for $50 to David,who indorses the check in blank and gives it to his sister,Glenda,for her birthday.She indorses the check in blank and gives it to her trash collector to pay her quarterly bill.Which of the following is correct?


A) David made transfer warranties to Glenda and to her trash collector.
B) David did not make transfer warranties to Glenda because Glenda gave no consideration for the transfer of the check to her.
C) Neither David nor Glenda made any transfer warranties because they indorsed the check with blank indorsements, making the check bearer paper.
D) The trash collector must wait until the check is dishonored before making a transfer warranty claim against Glenda.

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