Fact Pattern 24-2A
Quantity Sales Corporation and Resources Purchasing Company enter a contract for a sale of processed silver. Quantity Sales draws a draft unconditionally ordering Resources Purchasing to pay $50,000 to Quantity Sales's order in sixty days. Resources Purchasing signs and dates the draft.
-Refer to Fact Pattern 24-2A. On this instrument, Quantity Sales is
A) the banker.
B) the drawer.
C) the maker.
D) the trader.

Question

Fact Pattern 24-2A 
Quantity Sales Corporation and Resources Purchasing Company enter a contract for a sale of processed silver. Quantity Sales draws a draft unconditionally ordering Resources Purchasing to pay $50,000 to Quantity Sales's order in sixty days. Resources Purchasing signs and dates the draft.
-Refer to Fact Pattern 24-2A. On this instrument, Quantity Sales is
A) the banker.
B) the drawer.
C) the maker.
D) the trader.

Quizplus · Accepted Answer

Quantity Sales is the drawer because they drew up the draft, which is a type of negotiable instrument. Resources Purchasing is the drawee, as they are the party being ordered to pay the amount specified on the draft.