Big O Notation - Confused with some code

I’ve never coded in Ruby, actually :smiley:
But I still see a problem here:

def itemsinlist(list, item)
    list.each do |x|
        if item == x
            return true
        else
            return false
        end
    end
end

This code will return false every time when first array element is not equals to item
It will not check the rest of array in such case

False should be returned only when loop is finished (the whole array was checked and nothing found):

def itemsinlist(list, item)
    list.each do |x|
        if item == x
            return true
    end
    return false
end