If a Bank Pays a Check Whose Face Has Been

question 52

Multiple Choice

If a bank pays a check whose face has been altered to increase the amount above that which the drawer intended to pay, the bank:

• A) is liable to the drawer for the amount of the increase.
• B) has defenses against the drawer's claims.
• C) incurs liability only if it failed to examine the check before payment.
• D) incurs liability only if the drawer made the alteration.

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Definitions:

LiAlH4

Lithium aluminium hydride, a powerful reducing agent widely used in organic chemistry for the reduction of various functional groups including esters, carboxylic acids, and aldehydes.

Secondary Alcohol

An alcohol containing a hydroxyl group (-OH) attached to a carbon atom that is itself attached to exactly two other carbon atoms.

Grignard Reagent

Organomagnesium compounds used in organic chemistry to form carbon-carbon bonds, represented by the formula RMgX.

Starting Material

The substances used at the beginning of a chemical synthesis which are transformed through chemical reactions to produce desired products.