Reference no: EM133672139

Question

Evelyn writes a check for $100 payable to Carter and drawn on Bank of the Ozarks. Carter makes a purchase at his local grocery store, so Carter indorses the check on the back and gives it to Sean to pay for his groceries. Sean indorses the check on the back with the notation "without recourse" and deposits it in his account at First Federal Bank. The parties who signed the check and who will have primary liability to make payment of this check will be: Evelyn and Sean. Evelyn, Carter, and Sean. Evelyn and Carter. Carter and Sean.Betty writes a check for $500 payable to Luanne and drawn on Union Planters Bank. Luanne indorses the check on the back and gives the check to Randolph in payment for a couch that Luanne buys from Randolph. Randolph indorses the check on the back, under Luanne's signature, and takes the check to Union Planters Bank to cash. Union Planters Bank dishonors the check, even though there are sufficient funds in Betty's account. Primary liability for honoring the check that Randolph presented to Union Planters Bank lies with: Luanne only, because Luanne is the party from whom Randolph received the check. Union Planters.