When a payment is tendered by check,_____.
A) the buyer does not have the right to retain the goods and must give them back to the seller
B) the payment is not conditional but can be considered as final or complete
C) the buyer has the right to retain the goods if the bank refuses to pay the check
D) the duty to pay for the goods is satisfied by the buyer if the bank pays the check

Question

Quizplus · Accepted Answer

If payment is made by check, the payment is conditional on the check's being honored by the bank when it is presented for payment. If the bank refuses to pay the check, the buyer has not satisfied the duty to pay for them. This implies that the duty to pay for the goods is satisfied by the buyer if the bank pays the check. In that case, the buyer does not have the right to retain the goods and must give them back to the seller.

When a Payment Is Tendered by Check,_____