Sarah Has a Checking Account at First Bank

question 64

Multiple Choice

Sarah has a checking account at First Bank. Orrin steals one of her blank checks, writes a check for $250 to himself, and then forges Sarah's signature. Orrin then indorses the instrument to Paul in payment of a debt. Paul, who does not know of the forgery, presents the instrument to First Bank for payment. At First Bank's request, Paul indorses the instrument, and the bank then pays him $250. Which of the following is correct?

• A) Paul has breached the warranties on presentment.
• B) Orrin has breached the warranties on presentment.
• C) Sarah has breached the warranties on presentment.
• D) All of these are correct.
• E) Both Paul and Orrin have breached the warranties on presentment.

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Definitions:

Predetermined

Decided or arranged in advance, often implying a lack of spontaneity or choice.

Parts of Self

The various aspects or identities within an individual, each with its own perspectives and characteristics.

Organismic Self-Regulation

A concept referring to the innate ability of an organism to regulate and balance its internal environment in response to external changes.

Paradoxical Theory of Change

The Paradoxical Theory of Change suggests that change occurs when one becomes fully what they are, rather than trying to become something they are not.