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:

Oxidation

A chemical process involving the loss of electrons or an increase in oxidation state by a molecule, atom, or ion.

Chromium

A chemical element with symbol Cr and atomic number 24, known for its high corrosion resistance and hardness.

Organic Product

Compounds primarily composed of carbon atoms, resulting from the synthesis in organic chemistry.

Major Structure

Refers to the principal arrangement or configuration of atoms within a molecule, often determining its chemical behavior.