Bob, a Guest in Jim's House, Opens Jim's Desk and Writes

question 20

Multiple Choice

Bob, a guest in Jim's house, opens Jim's desk and writes a check to himself on Jim's checking account, forging Jim's signature. He indorses the check "Bob Saunders" and presents it to Jim's bank for payment. If the bank pays, can it collect from Jim's account?

• A) Yes, because Bob is the real payee.
• B) Yes, because Jim's name is on the check.
• C) No, because bank should have known the signature is forged.
• D) No, because Jim did not know of the check.

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