In the Case of Multiple Forgeries by the Same Wrongdoer

question 47

Multiple Choice

In the case of multiple forgeries by the same wrongdoer, if a customer examines a bank statement and does not notify the bank of the first forgery within the time required by the UCC, what is the effect on subsequent forgeries assuming the bank is not negligent?

• A) There is no effect because each forgery stands on its own.
• B) The customer is barred from recovering on the subsequent forgeries.
• C) The customer may recover on the subsequent forgeries if they are reported to the bank within 5 days after the statement showing the forgery is received by the customer.
• D) The customer may recover on the subsequent forgeries if they are reported to the bank within 10 days after the statement showing the forgery is received by the customer.
• E) The customer may recover on the subsequent forgeries if they are reported to the bank within 15 days after the statement showing the forgery is received by the customer.

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Definitions:

Marginal Cost

The additional cost incurred from the production of one more unit of a product or service.

Total Cost

The complete cost of production that includes both fixed and variable costs.

Opportunity Cost

The best alternative that we forgo, or give up, when we make a choice or a decision.

ΔTVC/Δq

ΔTVC/Δq represents the change in Total Variable Cost (TVC) resulting from producing one additional unit of output, equivalent to Marginal Cost.