Qita Has the Authority to Issue Checks on Behalf of Retail

question 5

Multiple Choice

Qita has the authority to issue checks on behalf of Retail Center. Qita creates a dozen unauthorized checks that she deposits in her account at State Bank. The payee line on each check is blank. In a suit between Retail Center and State Bank over the loss, the party or parties most likely to be held liable is

• A)Retail Center.
• B)State Bank.
• C)Retail Center and State Bank, in prorated amounts.
• D)none of the choices.

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Definitions:

Revealed Preference

An economic concept referring to the idea that consumers' choices, reflected in their purchasing decisions, reveal their preferences for certain goods or services over others.

Weak Axiom

In economic theory, a principle stating that if a consumer prefers bundle A to bundle B, then they will not prefer B to A when prices change, keeping income constant.

Revealed Preference

A theory suggesting that consumers' preferences can be determined by observing their purchasing behavior and the choices they make among different goods.

Weak Axiom

In the context of consumer choice theory, it is a postulate stating that if a consumer prefers bundle A over bundle B when both are affordable, then she will not choose B when A becomes more affordable.