1. Randy Rouser completes landscaping work on Nina Tothill's yard, and Nina writes a $1,750 check from her account at Small Bank. The check is written as payable to Randy Rouser. Randy needs to pay house repair bills, so he indorses the check and delivers it to Christina Caliss, a professional plumber, for value received. Christina in turn deposits the check in her account at Large Bank. Large Bank quickly returns the check to Christina with a mark stating that the check has insufficient funds. Christina wants to know whether Randy or Nina can be held liable for the check. Advise Christina on what she needs to know in order to answer that question.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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1. Randy Rouser completes landscaping work on Nina Tothill's yard, and Nina writes a $1,750 check from her account at Small Bank.
The check is written as payable to Randy Rouser. Randy needs to pay house repair bills, so he indorses the check and delivers it to
Christina Caliss, a professional plumber, for value received. Christina in turn deposits the check in her account at Large Bank. Large
Bank quickly returns the check to Christina with a mark stating that the check has insufficient funds. Christina wants to know whether
Randy or Nina can be held liable for the check. Advise Christina on what she needs to know in order to answer that question.
Transcribed Image Text:1. Randy Rouser completes landscaping work on Nina Tothill's yard, and Nina writes a $1,750 check from her account at Small Bank. The check is written as payable to Randy Rouser. Randy needs to pay house repair bills, so he indorses the check and delivers it to Christina Caliss, a professional plumber, for value received. Christina in turn deposits the check in her account at Large Bank. Large Bank quickly returns the check to Christina with a mark stating that the check has insufficient funds. Christina wants to know whether Randy or Nina can be held liable for the check. Advise Christina on what she needs to know in order to answer that question.
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