Sarah Has a Checking Account at First Bank

question 58

Multiple Choice

Sarah has a checking account at First Bank.Orrin steals one of her blank checks, writes a check for $250, and then forges Sarah's signature.He then presents the check to First Bank for payment.First Bank pays the forged instrument.Which of the following statements is correct?

• A) First Bank will have to recredit the $250 to Sarah's account if she so requests, if Sarah was not found to be negligent.
• B) Sarah is primarily liable if she was negligent in allowing Orrin to take the blank check.
• C) Orrin is responsible to First Bank for the $250.
• D) All of these.

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Definitions:

Schizophrenia

A severe mental disorder involving chronic or recurrent psychosis, characterized by disordered thoughts, perceptions, and emotional responsiveness.

Antianxiety Drug

Medications designed to reduce or relieve anxiety symptoms by influencing brain chemistry, also known as anxiolytics.

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A mental disorder characterized by persistent, unwanted thoughts (obsessions) and repetitive behaviors (compulsions) that the individual feels driven to perform.

Schizophrenia

A mental disorder characterized by disturbances in thought, perception, and behavior, leading to hallucinations, delusions, and disordered thinking.