John received a check from his employer marked "pay to the order of John Jones." John used this check to pay for groceries from ABC Foods.He wrote on the back of the check: "pay to ABC Foods,for groceries." Was this check properly negotiated?
A)No,because the statement that the check was for payment to ABC Foods defeats this negotiation.
B)No,because John did not indorse the check.
C)Yes,because John transferred possession of the check and ABC Foods acted in good faith.
D)Yes,because a holder's signature is not always needed in order to negotiate a check.

Question

Quizplus · Accepted Answer

If an instrument is payable to the order of a specific payee,it is called order paper,and it can be negotiated by transfer of possession of the instrument after indorsement by the person specified.

John Received a Check from His Employer Marked "Pay to the Order