Sarah draws a check on her account at Bank of America, payable to Trees R US....

Sarah draws a check on her account at Bank of America, payable to Trees R US.

a. She postdates the check by 15 days. Does this affect the negotiability? Explain.

b . Identify the drawer, the drawee and payee.

Expert Solution

(a) Postdating a check does not affect the negotiability of the check, it simply means the payee cannot cash the check before the date mentioned on the check. So, if Sarah postdates the check by 15 days, it means that Trees R US can cash in the check after 15 days from the day she is writing the check. Once a person signs a check, it becomes a legal tender (i.e. it is accepted as a legal form of payment), hence it does not affect the negotiability of the check.

(b) Drawer = Sarah, Drawee = Bank of America, Payee = Trees R US

The person who is writing the check is called as Drawer, in this case, Sarah is the Drawer since she is writing the check. The bank from where the check is drawn is called as Drawee, in this case, Bank of America is the Drawee since Sarah draws a check from her Bank of America account. The payee is the person to whom the check is payable and here Trees R US is the organization who would receive the money from Sarah so Trees R US is the payee.

Rahul Sunny answered 1 year ago

Business Law question: Sarah draws a check on her account at Bank of America, payable to...

Business Law question: Sarah draws a check on her account at Bank of America, payable to Trees R US. a. She postdates the check by 15 days. Does this affect the negotiability? Explain. b . Identify the drawer, the drawee and payee.

4. A Corporation draws a check payable to First Bank. The check is given to an...

4. A Corporation draws a check payable to First Bank. The check is given to an officer of Corporation (known to Bank), who is instructed to deliver it to Bank in payment of a debt owed by Corporation to Bank. Instead, the officer, intending to defraud Corporation, delivers the check to Bank in payment of his personal debt. Bank has received funds of Corporation that have been used for the personal benefit of the officer. Corporation asserts a claim to...

question If Susan Kalanti deposits $35,000 into her saving account at her Bank of America branch...

question If Susan Kalanti deposits $35,000 into her saving account at her Bank of America branch in Houston, TX, and you know that Bank of America can only loan 84% of that amount, then, because of this transaction, the money supply is US economy Question 7 options: increases by $21,8750 increases by $29,400 increases by $2,940,000 decreases by $29,400 Question 8 An economy experiences an economic "expansion" as long as Question 8 options: real GDP is continually increasing and there...

1. Drawing on her account at Comerica Bank, Jack writes a check to Jill, who deposits...

1. Drawing on her account at Comerica Bank, Jack writes a check to Jill, who deposits the check in her checking account at Chase Bank. Once the check has cleared, which of the following would have occurred to bank reserves and the M1 money supply? (More than one answer is correct) a. Bank reserves at Chase would have decreased, and bank reserves at Comerica would have increased. b. Total bank reserves would have increased; there would have been no change...

Date please white general ledger : cash at bank, accounts receivable, inventory,account payable, bank loan payable,...

Date please white general ledger : cash at bank, accounts receivable, inventory,account payable, bank loan payable, Transaction description 1 Obtained a loan of $48,000 from MRMC Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2018 and the principal of the loan is to be repaid on 1 June 2021. 2 Sold 9 boxes of Sprearmint Gum to Sweet Tooth for $100 each, Invoice No. 201. 3 Purchased...

Suppose Bank of America (BAC) wants to open two subsidies In the US in order to...

Suppose Bank of America (BAC) wants to open two subsidies In the US in order to 1) serve foreign residents living in the US and 2) conduct Int'l banking operations. Describe how BAC would structure these two new business. In other words, what kind of rules would they have to comply with and/or what kind of facilities would BAC have to set-up? Be specific.

a. A US corporation has an account payable to an unrelated Irish company in 90 days....

a. A US corporation has an account payable to an unrelated Irish company in 90 days. The amount of the payable is €500,000. The spot exchange rate for the euro is EUR/USD 1.2131. The company’s combined federal and state income tax rate is 27.3%; the Irish corporate income tax rate is 12.5%. The company expects the exchange rate for the euro to decline to 1.2030 prior to the account’s due date. When should the company make the payment? Explain. b....

Suppose you deposit $4,000 in currency into your checking account at Bank of America. Assume that...

Suppose you deposit $4,000 in currency into your checking account at Bank of America. Assume that Bank of America has no excess reserves at the time you make your deposit and that the required reserve ratio is 10 percent. 1) Use a T-account to show the initial effect of this transaction on bank of America's balance sheet. 2) Suppose that Bank of America makes the maximum loan they can from the funds you deposited. Use a T-account to show the...

Now assume the US firm has an account payable of 1,000,000 pounds due in 180 days....

Now assume the US firm has an account payable of 1,000,000 pounds due in 180 days. Nontechnically describe hedging transactions (or a sequence of transactions) that the firm may want to undertake for each of the following hedging alternatives: Forward hedge Money market hedge Option hedge

On Friday morning, Geoff deposits into his account at Heartland Bank a $500 check from Imelda,...

On Friday morning, Geoff deposits into his account at Heartland Bank a $500 check from Imelda, who also has an account at Heartland. On that same day, this check is considered a. a provisional credit. b. paid. c. cashiered. d. certified. Brady forges Cal’s signature on a check “payable to the order of Brady” drawn on Cal’s account in Downtown Bank. Cal’s forged signature is a. effective to the extent that the bank debits Cal’s account. b. not effective. c....

Question