Asked by Magen Phillips on Apr 24, 2024
Verified
Who is responsible for the check to Kaleb?
A) Jerome, as he was responsible to notify the bank that the check was altered.
B) The bank is responsible for the check because it cashed a check that had been altered.
C) No one, because the check is stale.
D) No one, because the check is nonpayable because it had been altered.
E) Jerome, because the bank bears no responsibility for altered checks.
Forged Check
A check that has been illegally altered or signed without the authorization of the account holder, often with fraudulent intent.
Bank Responsibility
The legal and ethical obligations of banks to act in the best interest of their customers and society, including the safeguarding of deposits and the prudent lending of funds.
Altered Check
A check that has been tampered with after its original issuance, such as changing the amount payable.
- Understand the rules that regulate the issuance of postdated and altered checks and the associated liabilities.
Verified Answer
RS
RAWAHA SIDDIQUI8 days ago
Final Answer :
B
Explanation :
The bank is responsible for the check because it cashed a check that had been altered. Banks have mechanisms and responsibilities to verify the authenticity and accuracy of checks before cashing them. If a check has been materially altered, such as changing the amount, it is the bank's responsibility to detect such alterations and act accordingly. In this case, the bank failed to identify the alteration made by Kaleb, making it responsible for the mishandled transaction.
Learning Objectives
- Understand the rules that regulate the issuance of postdated and altered checks and the associated liabilities.