Dan signs a check payable to Ed, who indorses the back, gives it to Foodway Market, and receives cash. The transfer of the check from Dan to Ed is
A) an assignment.
B) a negotiation.
C) none of the choices.
D) a sale.

Question

Dan signs a check payable to Ed, who indorses the back, gives it to Foodway Market, and receives cash. The transfer of the check from Dan to Ed is​
A) ​an assignment.
B) ​a negotiation.
C) ​none of the choices.
D) ​a sale.

Quizplus · Accepted Answer

The transfer of the check from Dan to Ed is a negotiation because Ed received possession of the check and indorsed it, allowing him to transfer ownership to Foodway Market in exchange for cash.

Dan Signs a Check Payable to Ed, Who Indorses the Back