To buy a stuffed cow, Ken executes a check "pay to Laura or bearer" and gives it to Laura, who does not own a stuffed cow. This check is
A) negotiable.
B) nonnegotiable, because it does not indicate a specific payee.
C) nonnegotiable, because it may be a joke.
D) nonnegotiable, because Laura does not own a stuffed cow.

Question

Quizplus · Accepted Answer

The check is negotiable because it meets all the requirements for negotiability, including being payable to a specific person or bearer, being in writing, and signed by the drawer. Whether or not Laura actually owns a stuffed cow is irrelevant.

To Buy a Stuffed Cow, Ken Executes a Check "Pay