Kelly wrote a check to Trish, which Trish immediately changed from $20 to $120. She negotiated the check to Carl for value, who in turn took it to Kelly's bank for certification. Kelly's bank checked his account and certified the check since there were sufficient funds to cover the check. Thereafter, Carl gave the check to General Motors as part of the down payment for his car. G.M. presents the check to Kelly's bank for payment and they discover the alteration. The bank:
A) can sue G.M. for breach of presentment warranty of no alteration.
B) can charge Carl's account for $120.
C) can refuse to pay G.M. more than $20.
D) must pay G.M. $120 and cannot sue them for breach of warranty.

Question

Quizplus · Accepted Answer

The Answer of Kelly wrote a check to Trish, which Trish immediately changed from $20 to $120. She negotiated the check to Carl for value, who in turn took it to Kelly's bank for certification. Kelly's bank checked his account and certified the check since there were sufficient funds to cover the check. Thereafter, Carl gave the check to General Motors as part of the down payment for his car. G.M. presents the check to Kelly's bank for payment and they discover the alteration. The bank:
A) can sue G.M. for breach of presentment warranty of no alteration.
B) can charge Carl's account for $120.
C) can refuse to pay G.M. more than $20.
D) must pay G.M. $120 and cannot sue them for breach of warranty.

Kelly Wrote a Check to Trish, Which Trish Immediately Changed