When Will a Party's Negligence Not Permit the Party to Escape

question 46

Multiple Choice

When will a party's negligence not permit the party to escape liability for an unauthorized signature?

• A)Any type of negligence will result in a party being unable to escape liability for an unauthorized signature.
• B)The issue of negligence is irrelevant as to whether a party may escape liability for an unauthorized signature,because a party is always liable for an unauthorized signature.
• C)A party who is negligent may not escape liability for an unauthorized signature if the party whose signature was forged behaved so negligently as to substantially contribute to the making of the forgery.
• D)A party's negligence will not permit the party to escape liability for an unauthorized signature,but only if the negligence amounts to a finding of recklessness.
• E)A party's negligence will not permit the party to escape liability for an unauthorized signature,but only if the negligence involved a certified check.

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Definitions:

Investing Activities

Financial actions that involve the purchase and sale of long-term assets and investments not included in cash equivalents.

Net Cash

The amount of cash available after accounting for cash inflows and outflows, used to measure liquidity and cash position of a business.

Marketable Securities

Financial instruments and assets that can be easily converted into cash without significant loss of value.

Financing Activities

Transactions and events that affect long-term liabilities and equity, such as issuing debt or equity, repurchasing shares, and paying dividends.