Miller Does the Payroll for XYZ Company

question 4

Multiple Choice

Miller does the payroll for XYZ Company.In between Adams and Bates, he inserts the name Appleton and makes out a weekly paycheck in that name.He keeps the check for himself, signing "Appleton" and cashing it at a local bank.Auditors discovered the fake payee many months later.May XYZ require the bank to recredit?

• A)No, because of the holder rule
• B)No, because Miller is an XYZ employee and the fictitious payee rule applies
• C)Yes, because the indorsement is forged
• D)Yes, because the check was, in effect, stolen

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Definitions:

Domestic Price

The price of goods or services within a country's domestic market, excluding international transactions.

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An economic policy that allows imports and exports between countries with minimal governmental restrictions or tariffs to promote international trade.

World Price

The international market price of a good, influenced by global demand and supply conditions.

Domestic Price

The price of goods or services within a country's borders.