The Railway Express Agency delivered a shipment of goods to ...

[Kthamas]

The Railway Express Agency delivered a shipment of goods to Lorraine. Payment for the goods was made with a certified check, payable to the order of the Railway Express Agency. The check was drawn by Lorraine on the First National Bank of Detroit. Later, the bank refused to pay the check when it was presented by Railway Express, the holder, because the bank had become insolvent and stopped doing business. The Railway Express Agency sued Lorraine. Lorraine claimed that she was not liable on the check because it was certified. Is she correct?

Question 2

A nuncupative will:
 A)Is valid in most states.
 B)Is an oral will.
 C)Is a will entirely in the handwriting of the testator.
 D)None of the above

[TheNamesImani]

Answer to Question 1

No. Judgment will be for Railway Express Agency against Lorraine. The fact that a check is certified on the application of the drawer does not discharge the drawer. The fact that primary liability of the bank is obtained by the certification does not compel the holder of the instrument to look only to the primary party. The drawer remains bound as a secondary party.

Answer to Question 2

B

[Kthamas]

YES! Correct, THANKS for helping me on my review

[gcook]

Gracias!