State Bank's Policy Requires That Indorsements on Checks Exactly Match

question 2

Multiple Choice

State Bank's policy requires that indorsements on checks exactly match the names of the payees.Tovar,an employee of United Company,issues and indorses several payroll checks in the names of former employees and deposits them into her account at State.United files a suit against State to recover the funds.Most likely to suffer the loss is

• A)State Bank on the basis of bad faith.
• B)Tovar on the ground that she was a fictitious payee.
• C)United Company for failing to monitor its employee.
• D)the employees in whose names the checks were issued and indorsed.

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Definitions:

Slippery Slope Theory

A logical argument suggesting that a minor action will lead to a chain of related and increasingly significant events, often resulting in a negative outcome.

Police Corruption

Unethical or illegal conduct by law enforcement officers, often involving bribery, extortion, or the misuse of power.

Occupational Groups

Categories or clusters of jobs that share similar tasks, duties, or functions within the workforce.

Institution

An established organization, especially one of public importance, or a system of rules and norms governing behavior within a community.