Asked by Mikey Tiffany on Apr 27, 2024
Verified
Accept a check marked "paid in full" unless it does pay the full balance
A) best practice (good policy)
B) not a best practice (not a good policy)
Paid in Full
A term indicating that a bill or a debt has been completely paid off and no amount remains due.
Full Balance
This term could refer to the complete settling of a financial account, leaving no outstanding balance.
- Ascertain effective techniques for accepting checks that secure against potential fraud.
- Comprehend the elements required for a check's validity and the legal consequences of endorsing checks labeled as "paid in full".
Verified Answer
JN
Jaslyn N’koleMay 01, 2024
Final Answer :
B
Explanation :
Accepting a check marked "paid in full" when it does not actually cover the full balance owed can legally be interpreted as an agreement to settle the debt for the lesser amount, which is why it's not considered a good policy.
Learning Objectives
- Ascertain effective techniques for accepting checks that secure against potential fraud.
- Comprehend the elements required for a check's validity and the legal consequences of endorsing checks labeled as "paid in full".