Asked by Dathan Trejo on Jun 10, 2024
Verified
Iris has a checking account at Marconi Bank. Orrin steals one of her blank checks, writes a check for $350, and then forges Iris' signature. He then presents the check to Marconi Bank for payment. Marconi Bank pays the forged instrument. Which of the following statements is NOT true?
A) Marconi Bank will have to recredit the $350 to Iris' account upon her request, if Iris was not found to be negligent.
B) Orrin is responsible to Marconi Bank for the $350.
C) Marconi Bank must recredit the $350 to Iris' account only if she has issued a stop payment order within 10 days.
D) Iris is primarily liable if she was negligent in allowing Orrin to take the blank check .
Forged Instrument
indicates a document that has been illegally altered or created to look genuine for the purpose of deceit or fraud.
Checking Account
A bank account from which funds can be withdrawn using checks, debit cards, or electronic transfers, offering easy access to money for daily transactions.
Negligent
Failing to take proper care in doing something, leading to damage or injury to another.
- Understand the significance of unauthorized signatures and their legal implications.
- Explain the conditions under which liability for wrongful conversion of an instrument occurs.
Verified Answer
Learning Objectives
- Understand the significance of unauthorized signatures and their legal implications.
- Explain the conditions under which liability for wrongful conversion of an instrument occurs.
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