Which statement is correct regarding whether Tom will have to bear the loss on the later forgeries, other than the first one, by Rose?

A) Tom will not likely have to bear the loss because there was no delay in bank notification.
B) Tom will not have to bear the loss because forgeries were involved.
C) Tom will not have to bear the loss because the forgeries were by an employee; otherwise, he would have had to bear the loss.
D) Tom will have to bear the loss because the checks were cashed before he notified the bank.
E) Tom will have to bear the loss because he did not notify the bank about the first forgery by Rose within 30 days.

Question

Tiffany Cafarella · Accepted Answer

Final Answer : E, Explanation :  Tom's failure to notify the bank within 30 days of receiving his bank statement that contained the first forgery by Rose means he did not meet the notification requirement. This delay in notification likely forfeits his right to reimbursement for the subsequent forgeries by Rose, as banks typically require prompt notification of unauthorized transactions to limit their liability.

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