Asked by Christine Mccloud on Jul 12, 2024
Verified
In case a check is altered so skillfully that a bank is unable to detect the alteration,which of the following stands true?
A) The bank should honor only those checks for which it receives a notice from the drawer.
B) The bank is allowed to charge to the account the amount for which the check originally was written.
C) The bank will be liable to recredit the drawer's account for negligence.
D) The bank will hold the drawer responsible for contributing to the alteration of the check.
Skillfully Altered
Modified or changed in a way that demonstrates a high level of expertise or craftsmanship.
Drawer's Account
The bank account on which a check is drawn; the account belonging to the individual who has written the check.
Bank Liability
Refers to the legal obligations and responsibilities of a bank, including potential debts or legal liabilities arising from its operations.
- Discern the judicial protections and criteria established for consumers and banks under the Uniform Commercial Code (UCC) for cases involving check alteration and forgery.
Verified Answer
KM
kevin machiqueJul 16, 2024
Final Answer :
B
Explanation :
Occasionally,the alteration is so skillful that the bank cannot detect it.In that case,the bank is allowed to charge to the account the amount for which the check originally was written.
Learning Objectives
- Discern the judicial protections and criteria established for consumers and banks under the Uniform Commercial Code (UCC) for cases involving check alteration and forgery.