Wendell Bought a Widget from Sharon and Used a Cheque

question 11

Multiple Choice

Wendell bought a widget from Sharon and used a cheque to pay the purchase price of $10 000.Wendell made the cheque payable to Sharon personally.That cheque was drawn on Wendell's account at the Bank of Gander.A thief stole the cheque from Sharon, forged her general endorsement, and sold the cheque to Oren.Oren then endorsed the cheque and negotiated it to Abby.Which of the following statements is TRUE?

• A)Abby is entitled to sue Wendell because the forgery does not affect the fact that he promised to pay $10 000.
• B)Wendell owes a debt to Oren.
• C)Because forgery is a real defence, Abby cannot sue anyone except the person who committed the forgery.
• D)If the Bank of Gander paid $10 000 to Abby and debited Wendell's account, Wendell can force the bank to repay $10 000 into his account if he acts promptly.
• E)In the final analysis, the Bank of Gander will necessarily suffer the loss if it honoured the cheque and paid $10 000 to Abby.

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Definitions:

Roberts' Rules Of Order

A widely used manual of parliamentary procedure that governs the conduct of meetings in many organizations.

Groupthink

Groupthink refers to a psychological phenomenon where the desire for harmony and conformity within a group results in an irrational or dysfunctional decision-making outcome.

Nominal Group

A technique used in group decision-making that involves individuals generating ideas independently before sharing and discussing them collectively.

Illusion Of Agreement

The false perception that consensus has been achieved in a group when, in reality, members may not fully understand or support the decision.