Generally, When an Endorsement on a Check Has Been Forged

question 12

Multiple Choice

Generally, when an endorsement on a check has been forged, which party is the party ultimately liable for the loss?

• A) The drawer.
• B) The first party to accept the forged instrument.
• C) The first endorser of the instrument.
• D) The bank of the first party to accept the forged instrument.
• E) The bank of the drawer even if proper notice was given of the forgery.

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Definitions:

Domestic Corporations

Companies that are incorporated (i.e., formed under the corporate laws) in and operate within the country in which they were founded.

Board of Directors

A group of individuals elected to represent shareholders and govern the affairs of a corporation.

Finalize Deal

To complete the negotiations and formal agreements of a business transaction, making it official and binding.

Asset Sale

The process of selling off individual assets of a company, such as real estate, machinery, or intellectual property, rather than transferring ownership of the company itself.