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

Question

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

Quizplus · Accepted Answer

When Joni wrote the check, she authorized the credit union to pay up to $500 from her account. Since the credit union paid the check in good faith, they are allowed to charge Joni's account the full amount of $500.

Joni Writes Keizer an Uncertified Check for $500 Drawn on Joni's