I currently work in Ad Design for a newspaper, and I notice that all of the ads for auctions (usually farm equipment auctions) say something like “Payment terms: Cash or Good Check, I.D. Required.” Does “good check” here refer to something like a Cashier’s Check or Money Order, or does it simply mean “it better not bounce”? ( If it does mean the latter, it seems kind of odd to specify that the check should be good; it would be like saying “no counterfeit cash accepted” or something.)
Interesting question. It does seem interesting that they specify that the check must be “good”, considering the fact that I don’t know of anyone except possibly “cash advance” places that generally doesn’t mind if checks turn out to be bad. I would guess that saying that “checks” are acceptable includes an implied requirement that the check be good, based on common sense. E.g. you couldn’t say, “Buy you said you accepted checks! You didn’t say the checks had to be good!”
A quick search on “cash or good check” turned up this auction, which happens to be for farm equipment. Could the term be one that is traditional or cultural to the industry but that doesn’t have a specific distinct legal meaning?
Maybe it’s supposed to mean “no post-dated cheques” or something like that.
WAG: Perhaps they will accept a check from someone with whom they’ve done business in the past (with the trust that implies) but not from a complete stranger?
A “good check” is a check that is good for payment. Most checks are not good for payment because payment is made when the check presented to the bank. A certified check, on the other hand, is presented BY the bank, and payment is therefore made when the check is tendered.
Some auctions specify a company check accompanied by a letter of credit from a bank. This is not the same thing.
When using certified checks at an auction, it’s usual to bring several checks made out to yourself in various denominations. Then you sign over a combination that is close, and receive a refund for the difference or pay up the difference in cash.
Thanks, Nametag! The whole “good check” thing was bugging me for a while, and I couldn’t find any definitions on the Web.