Which statement is true regarding whether the bank will legally have to accept responsibility for the check presented by Emma?

A) The bank has no responsibility to repay Tom on the basis that because Emma was an employee, the check was not considered forged.
B) The bank will be required to repay Tom because the check was forged.
C) Tom will have to bear the loss because the check was paid before the bank had notice of the forgery.
D) Tom will not have to bear the loss because the forgeries were by an employee; otherwise, he would have had to bear the loss.
E) The bank will likely not be required to repay Tom because Tom's negligence in leaving the rubber stamp with his signature readily available likely substantially contributed to the forged signature.

Question

Astha Sharma · Accepted Answer

Final Answer : E, Explanation :  The bank is likely not required to repay Tom for the checks presented by Emma because Tom's negligence in securing his signature stamp contributed significantly to the opportunity for the forgery to occur.

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