Sarah Has a Checking Account at First Bank

question 71

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) Orrin is responsible to First Bank for the $250.
• C) Sarah is primarily liable if she was negligent in allowing Orrin to take the blank check.
• D) All of these.

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Definitions:

Atmospheric Layer

A layer in the Earth's atmosphere characterized by specific temperature and pressure conditions, such as the stratosphere or troposphere.

Earth's Air

The mixture of gases surrounding the planet, known as the atmosphere, which is crucial for supporting life by providing oxygen and protecting against solar radiation.

Troposphere

The lowest layer of Earth's atmosphere, where weather phenomena like rain, snow, and storms occur.

Atmospheric Boundary

The transitional layer of the atmosphere closest to the Earth's surface where the majority of weather phenomena take place.