In Southwest Bank,the Case in the Text in Which an Employee

question 62

Multiple Choice

In Southwest Bank,the case in the text in which an employee of the plaintiff fraudulently deposited into her personal account at the defending bank checks for which the plaintiff was payee.The plaintiff sued the defending bank for checks endorsed by the employee "for deposit only" and with no endorsement from the plaintiff.Which of the following was the result in this case?

• A)The court ruled that because employee fraud was involved,the defending bank held no responsibility to the plaintiff.
• B)The court ruled that because a fraud was involved,regardless of whether or not it was on the part of plaintiff's employee,the defending bank held no responsibility to the plaintiff.
• C)The court ruled that because the defending bank was merely the depositary bank,it held no responsibility to the plaintiff.
• D)The court ruled that the defending bank was liable to the plaintiff.
• E)The court ruled that the defending bank was entitled to assume that the depositor was entitled to deposit the checks.

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Definitions:

Initial Cost

The original cost of acquiring an asset, including the cost of purchase and other expenses necessary to get the asset ready for its intended use.

Book Value

The value of an asset as it appears on a balance sheet, calculated by subtracting any associated depreciation or amortization from its original cost.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into service, reducing its book value on the balance sheet.

Machinery

Equipment or devices that perform specific tasks, often used in production and manufacturing processes.