Asked by Caroline Bachus on Jul 15, 2024
Verified
Jane wrote a check for $10.She wrote this check in a careless and negligent manner,making alteration easy.Ben altered this check to read $1,000.His alteration was crude and obvious to anyone paying attention.Ben cashed the check at Jane's bank.The bank was negligent in accepting this check,but it deducted $1,000 from Jane's account.Jane sued the bank,and the jury determined that Jane's negligence contributed to 50 percent of the loss and the bank's negligence contributed 50 percent.How much is Jane entitled to recover from her bank?
A) Nothing,because she was negligent.
B) Half the loss.
C) The entire loss.
D) The entire loss plus her court costs.
Altered Check
A cheque that has been modified in a material way (e.g., changing the amount or payee) without the authorization of the issuer.
Check Alteration
The unauthorized modification of a check's details, typically to fraudulently redirect funds or increase the amount.
Negligence
A legal concept entailing a failure to exercise appropriate care or a breach of duty that results in harm or damage to another party.
- Learn about the obligations and liabilities of drawers and endorsers regarding check alterations, negligence, and recovery.
Verified Answer
KA
Katherin AfanadorJul 18, 2024
Final Answer :
B
Explanation :
In a case where both a bank and its customer fail to use ordinary care,a comparative negligence standard is used.
Learning Objectives
- Learn about the obligations and liabilities of drawers and endorsers regarding check alterations, negligence, and recovery.