Question

Hot Dress. Doreen writes a check for a dress to Hot Dresses, Inc., a small specialty shop owned primarily by Betty. Betty was getting ready to go on an extended European vacation and temporarily closed the shop the day after the dress sale to Doreen. When Betty returned, she had a number of other things to do and did not take Doreen's check and some other checks to the bank for three months. Betty was independently wealthy and only ran the shop as a hobby, so she had not been in need of funds. When Betty finally took Doreen's check to the bank, Betty requested that her bank, ABC Bank, deposit the check into her account. When ABC Bank, however, requested payment from Doreen's bank, XYZ Bank, the check was dishonored because of insufficient funds in Doreen's account. Although Betty did not particularly need the funds, she did not like to feel as if she had been cheated; therefore, she demanded that Doreen make the check good. Which of the following parties is the holder of the check?

a. Doreen's bank
b. Hot Dresses, Inc.
c. Betty, because she owns Hot Dresses, Inc.
d. Bety's bank

Answer 1

a. Doreen's bank

Step-by-step explanation:

Since the cheque was dishonored due to the non-sufficient balance in the bank account of the doreen and betty should not feel that she was cheated so she demand doreen to make the good check

So here as per the given situtation, the holder of the check would be doreen as we considered that he is the drawer of the check

So , the option a is correct