Asked by Courtlyn Patrick on Jul 15, 2024
Verified
Tom steals Dave's checkbook, writes a check for $1,000,forges Dave's signature,and receives payment from Tom's bank.The bank paid in good faith.Who is liable to the bank for the $1,000 in this case?
A) Tom
B) Dave
C) Both Tom and Dave
D) Neither Tom nor Dave
Forges
Facilities or workshops where metal is heated and shaped, or the act of illegally copying or imitating something, such as documents or signatures.
Liable
Subject to legal responsibility for one's actions or omissions, potentially leading to civil or criminal penalties.
Good Faith
Acting with honesty and sincerity without any intention to defraud or seek undue advantage.
- Understand the ramifications under the law for illegitimate endorsements and counterfeiting on transferable financial documents.
Verified Answer
Learning Objectives
- Understand the ramifications under the law for illegitimate endorsements and counterfeiting on transferable financial documents.
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