Jacob Bought a Widget from Erin for $15 000

Multiple Choice

Jacob bought a widget from Erin for $15 000.In payment, he gave her a cheque that was payable to her.The cheque was drawn on his account at the Bank of Kitchener.Erin signed her name on the back of the cheque and delivered it to Arthur in order to discharge a debt that she owed to him.Arthur presented the instrument to the Bank of Kitchener for payment, but was refused payment because the balance for Jacob's account was only $8000.Which of the following statements is TRUE?

A) Arthur may be able to sue Jacob and Erin.
B) Arthur has a right to collect $8000 from the bank.
C) If the widget that Jacob bought from Erin is defective, Arthur cannot acquire any rights against the drawer of the cheque.
D) Notice of dishonour will be effective only if it is made in writing.
E) Arthur should provide notice of dishonour to the bank's manager as soon as possible.