When a Drawee Bank Pays on a Check That Lacks

question 41

Multiple Choice

When a drawee bank pays on a check that lacks an essential endorsement:

• A) the drawer is liable.
• B) the payee is liable.
• C) the drawee bank is liable.
• D) no one is liable.

---

Definitions:

Vicarious Liability

A legal principle where a party is held responsible for the actions or omissions of another person, typically in employer-employee relationships.

Spoliation

The intentional, reckless, or negligent destruction, alteration, or concealment of evidence that is relevant to a legal proceeding.

Remedy

Legal means to enforce a right or redress a wrong, which can involve monetary compensation, restitution, or other corrective measures.

Destroyed

Completely ruined or spoiled, often beyond repair or recovery.