In Case a Check Is Altered So Skillfully That a Bank

question 5

Multiple Choice

In case a check is altered so skillfully that a bank is unable to detect the alteration,which of the following stands true?

• A)The bank should honor only those checks for which it receives a notice from the drawer.
• B)The bank is allowed to charge to the account the amount for which the check originally was written.
• C)The bank will be liable to recredit the drawer's account for negligence.
• D)The bank will hold the drawer responsible for contributing to the alteration of the check.

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Definitions:

Common Law Judges

Jurists who interpret and apply the law according to historical legal precedents and decisions made in prior cases rather than written statutes or legislations.

Common Law

A body of law derived from judicial decisions of courts and similar tribunals, as opposed to statutes or written legislation.

Judges

Officials appointed or elected to preside over court proceedings, making decisions on legal issues and disputes.

Precedent

An earlier court decision; in a common law system, judges are required to follow a decision made in a higher court in the same jurisdiction where the facts are similar.