Question

Lance writes Martin a check drawn on Lincoln Bank. Martin presents the check for payment at Lincoln Bank in a timely and proper manner. Lincoln refuses to pay. As a legal matter:
a. Martin has dishonored the check.
b. Lincoln has dishonored the check.
c. Lincoln has warranted the check.
d. Martin has become secondarily liable on the check.

Answer 1

Answer:

The correct answer is B. Lincoln has dishonored the check.

Explanation:

Lance writes Martin a check drawn on Lincoln Bank. Martin presents the check for payment at Lincoln Bank in a timely and proper manner. Lincoln refuses to pay. As a legal matter, Lincoln has dishonored the check that is Lincoln Bank dishonored the check when it refused to cash it.