Which of the following would be the result in a majority of states in regard to Penny's obligation to the dive shop?
A) That because the debt was unliquidated and the dive shop cashed the check, an accord and satisfaction occurred, and Penny owes nothing.
B) That because the debt was liquidated, no accord and satisfaction occurred, and Penny owes the full $2,000.
C) That in order to satisfy equitable principles, the parties would split the remaining debt with Penny owing $1,000.
D) That under the UCC, Penny would be required to pay the full amount, but the dive shop would be estopped from charging any interest.
E) That because the dive shop offered, through issuance of the check, full repayment, no accord and satisfaction existed; Penny owes the full $2,000.

Question

Quizplus · Accepted Answer

Under UCC section 3-311, effective in 30 states, if a business does inadvertently cash a "paid-in-full" check, it has 90 days to offer the debtor repayment in the same amount in order to reinstitute the debt.

Which of the Following Would Be the Result in a Majority