In Circumstances Where a Bank Has Been Left with Liability

question 47

Multiple Choice

In circumstances where a bank has been left with liability for a forged cheque,why should every party accepting that cheque have verified the authenticity of the endorsements on it?

• A) The bank will deduct the value of the worthless cheque from any endorser's account.
• B) A verification agreement will entitle the bank to recover assets of endorsers.
• C) Without a special endorsement,collection may be a problem.
• D) All prior endorsers risk the bank's recovery efforts.

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Definitions:

Lymphocytes

A type of white blood cell that is part of the immune system, involved in protecting the body against both infectious disease and foreign invaders.

Hormones

Chemical messengers produced by endocrine glands that regulate various bodily functions by traveling through the bloodstream to target organs.

Complement

Group of serum proteins that stimulates phagocytosis and inflammation.

Classical Pathway

Part of the specific immune system for activation of complement.