Asked by rufyjane stephen manuere on May 22, 2024
Verified
Which of the following is true regarding electronic signatures?
A) Electronic signatures are not widely accepted because of the likelihood of fraud.
B) Many banking companies have policies that deem the merchant responsible for the charge if the buyer's payment is fraudulent.
C) Many banking companies have policies that deem the buyer responsible for fraudulent charges.
D) Banking companies are prohibited from having policies that deem the merchant responsible for a buyer's fraudulent charges.
E) There are few risks for companies who conduct business through an online banking system.
Promissory Note
A financial document in which one party promises to pay another a specific sum of money at a specified time or on demand.
Fraudulent Alteration
The illegal modification of a document or instrument in a manner that changes its legal rights or obligations, intended to deceive or defraud.
Electronic Signatures
Digital forms of a signature used to consent or approve documents and contracts electronically.
- Understand fraudulent inducement and fraud in the factum within the context of negotiable instruments.
Verified Answer
SM
Sevin MaahesMay 22, 2024
Final Answer :
B
Explanation :
Many banking companies have policies that place the responsibility for fraudulent charges on the merchant, especially in cases where the merchant fails to follow proper verification procedures. This is to protect consumers from unauthorized transactions and encourage merchants to adopt secure transaction practices.
Learning Objectives
- Understand fraudulent inducement and fraud in the factum within the context of negotiable instruments.