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.
B) Felix.
C) Guaranty Bank.
D) none of the choices.

Question

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.
B) ​Felix.
C) ​Guaranty Bank.
D) ​none of the choices.

Quizplus · Accepted Answer

Primarily liable on a check is the party who is obligated to pay it when it is presented for payment. In this case, none of the choices listed (Personnel, Felix, or Guaranty Bank) are primarily liable. The drawer of the check (Personnel) is secondarily liable, while the bank that issues the check is primarily liable.

Personnel Company Draws a Check Payable to Felix