Reference - Angry Employee

question 57

Multiple Choice

Reference - Angry employee. Martin is in charge of payroll and other expenses for ABC, Inc. He becomes very angry with his boss Adam because Adam started dating Martin's girlfriend Stacy. Martin decided to quit but not before he got some extra money from ABC, Inc. Martin wrote five checks from the account of ABC, Inc. to pay off the five credit card companies that Martin owed money. The credit card companies took the checks without reason to be suspicious as to the source of payment. The checks to the credit card companies in total amounted to $30,000, and each check was in an amount under $10,000. Martin also made out ten checks on the account of ABC to twenty alleged employees who did not really exist. Each of these checks was in the amount of $5,000. Martin took the checks, endorsed and cashed the checks in the names of the various fake employees, and kept the cash. Finally, Martin discovers through office gossip that Adam has been looking for another job with XYZ, Inc. located in a neighboring state and that Adam is supposed to go there for an in person interview in a few weeks. Martin sets up an interview with XYZ, Inc. pretends to be Adam, and induces XYZ, Inc. to give him, posing as Adam, a check for $5,000 as a signing bonus. Martin immediately endorses the check pretending to be Adam and pockets the cash. Finally, Martin leaves town heading for the Caribbean. Is ABC, Inc. entitled to a refund from its bank for the five checks used to pay Martin's credit card companies?

• A) Yes, ABC, Inc. is entitled to a refund because the credit card companies cannot be considered payees.
• B) Yes, ABC, Inc. is entitled to a refund because the credit card companies cannot be considered holders in due course.
• C) Yes, ABC, Inc. is entitled to a refund because the credit card companies can reverse the credits.
• D) No, ABC, Inc. is not entitled to a refund because none of the checks were in an amount over $10,000.
• E) No, ABC, Inc. is not entitled to a refund because the credit card companies are holders in due course entitled to the funds.

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Definitions:

Energy Production

The process of generating electricity or other forms of energy through various resources such as coal, natural gas, wind, water, or solar.

Demand-Side Factors

Factors affecting the quantity of a product or service demanded at a given price, including income levels, tastes, and preferences of consumers.

Finite Natural Resources

Natural resources that exist in limited quantities and are not renewable within a human lifespan, such as fossil fuels and minerals.

Per Capita Consumption

The average amount of goods or services consumed per person in a given population or area.