Asked by jayden pineda on Apr 25, 2024
Verified
JimBob, a guest in Jimbo's house, opens Jimbo's desk and writes a check to himself on Jimbo's checking account, forging Jimbo's signature. He indorses the check " JimBob Saunders" and presents it to Jimbo's bank for payment. If the bank pays, can it collect from Jimbo's account?
A) Yes, because JimBob is the real payee.
B) Yes, because Jimbo's name is on the check.
C) No, because bank should have known the signature is forged.
D) No, because Jimbo did not know of the check.
Forging
The illegal act of creating, altering, or imitating objects, documents, or signatures with the intent to deceive.
Collect
The action of gathering items or amounts due, often in the context of debts, payments, or data.
- Examine the impact of unauthorized endorsements on negotiable instruments and their consequences for the concerned parties.
Verified Answer
VT
Vivek Teotia8 days ago
Final Answer :
C
Explanation :
DThe bank cannot collect from Jimbo's account because the signature on the check was forged, making the transaction unauthorized. Additionally, Jimbo's lack of knowledge or consent to the transaction further invalidates any claim against his account.
Learning Objectives
- Examine the impact of unauthorized endorsements on negotiable instruments and their consequences for the concerned parties.
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