Question

Industries Inc. drew a check payable to "Gloria Schell and Pippen Tallit" in the sum of $20,000. For a proper negotiation, the check needs to be indorsed:

a. only by Gloria Schell, since her name appears first.
b. by either payee, since the indorsement of only one of the payees is necessary to negotiate the check.
c. by both payees
d. by the maker

Answer 1

In order for a check to be properly negotiated, it needs to be endorsed by all payees listed on the check.

The answer to this question is (c) by both payees. In order for a check to be properly negotiated, it needs to be endorsed by all payees listed on the check. In this case, the check is payable to both Gloria Schell and Pippen Tallit, so both of them need to endorse the check. If either one of them fails to endorse it, the check will not be considered properly negotiated.