Asked by
Kristina Riley
on Dec 19, 2024
Verified
Qita has the authority to issue checks on behalf of Retail Center. Qita creates a dozen unauthorized checks that she deposits in her account at State Bank. The payee line on each check is blank. In a suit between Retail Center and State Bank over the loss, the party or parties most likely to be held liable is
A) Retail Center.
B) State Bank.
C) Retail Center and State Bank, in prorated amounts.
D) none of the choices.
Unauthorized Checks
Checks that are issued and used without the account holder's knowledge or consent, typically an illegal activity.
Liability
The state of being legally responsible or obligated to settle a debt, fulfill a contractual duty, or compensate for harm or loss.
- Assess the responsibilities of individuals engaged in the generation, distribution, and failure of negotiable documents.
- Evaluate the responsibility implications associated with agency and representation during the execution of negotiable instruments.
Verified Answer
LD
Learning Objectives
- Assess the responsibilities of individuals engaged in the generation, distribution, and failure of negotiable documents.
- Evaluate the responsibility implications associated with agency and representation during the execution of negotiable instruments.
Related questions
Discharge from Liability on an Instrument Cannot Occur If a ...
Faro Is an Agent Authorized to Sign Negotiable Instruments on ...
Ruiz Writes a Check Drawn on His Account at Security ...
Lon Is Mill Corporation's Agent and Is Authorized to Write ...
Development Corporation Obtains a Business Loan from Equity LLC in ...