A Bank Will Not Be Liable for Payment of a Check

question 51

Multiple Choice

A bank will not be liable for payment of a check on which the drawer's signature has been forged if:

• A) the bank could not have detected the forgery through a reasonable investigation.
• B) there are more than two prior indorsers of the check.
• C) the bank gives a cashier's check in payment of the depositor's check.
• D) the drawer's negligence contributed substantially to the forging of the signature.

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Definitions:

Limited Decision Making

Decision-making characteristic of a buyer who invests a moderate level of energy in the decision to buy because, although the buyer is not familiar with each brand’s features, advantages, and benefits, the general quality of the good is known to him or her.

Buying

The act of acquiring goods or services in exchange for money.

Habit

A regular practice or routine that is hard to give up.

Psychological Factors

Elements of human behavior and processes that affect an individual's decisions and actions, particularly in the context of purchase behavior.