On May 1, Mia signs a check that is payable to the order of Nicole and that is dated July 1. This check is
A) negotiable.
B) nonnegotiable, because it is payable to a corporation.
C) nonnegotiable, because it is postdated.
D) nonnegotiable, because it is signed by the drawer.

Question

On May 1, Mia signs a check that is payable to the order of Nicole and that is dated July 1. This check is
A) ​negotiable.
B) ​nonnegotiable, because it is payable to a corporation.
C) ​nonnegotiable, because it is postdated.
D) ​nonnegotiable, because it is signed by the drawer.

Quizplus · Accepted Answer

The check is negotiable because it is payable to the order of Nicole, which means Nicole can either endorse it or deposit it into her account. Even though the check is postdated, it can still be negotiated before the date written on the check. Therefore, choices B, C, and D are incorrect.

On May 1, Mia Signs a Check That Is Payable