Petra signs a check payable to Quincy,who in?dorses the back,gives it to Regional Credit Union,and receives cash.The transfer of the check from Quincy to the credit union is
A)an assignment.
B)a negotiation.
C)a payment.
D)a sale.

Question

Quizplus · Accepted Answer

The transfer of the check from Quincy to the credit union through endorsement and receiving cash is known as negotiation. This involves the transfer of ownership and the instrument is used as a method of payment. Option A is incorrect, as assignment involves only transferring the rights to receive payment, not the ownership of the instrument. Option C is partially correct, as payment is involved, but it doesn't describe the transfer of ownership, which is important in this case. Option D is not relevant to the scenario.

Petra Signs a Check Payable to Quincy,who In?dorses the Back,gives