Which statement is correct regarding whether Tom will have to bear the loss on the first forged check by Rose?

A) Tom will not have to bear the loss because the forgeries were by an employee; otherwise, he would have had to bear the loss.
B) Tom will not have to bear the loss because the check was forged.
C) Tom will have to bear the loss because he did not notify the bank of the forgery within the time limit required.
D) Tom will have to bear the loss because the check was cashed before he notified the bank.
E) Tom will have to bear the loss because the check was forged.

Question

Macar Coloma · Accepted Answer

Final Answer : C, Explanation :  Tom will have to bear the loss because he did not notify the bank of the forgery within the time limit required. Banks typically require customers to report unauthorized transactions or forgeries within a specific timeframe to limit their liability. Since Tom delayed reporting Rose's initial forgery beyond this timeframe, he is responsible for the loss.

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