Fact Pattern 27-2A

question 8

Multiple Choice

Fact Pattern 27-2A
Ruth opens an account with State Bank under an agreement in which the bank reserves the right to charge the account for any item returned due to its unau?thorized alteration.
-Refer to Fact Pattern 27-2A. Tom deposits an altered check in Ruth's ac?count. When Unity Bank, the check's drawee bank, re?turns the item due to its alteration, State Bank files a suit against Ruth to recover the amount. The court is most likely to rule that

• A) Ruth does not have to pay, because she did not indorse the check.
• B) State Bank is entitled to recover under its account agreement.
• C) Tom is the party from whom State Bank should seek recovery.
• D) Unity Bank is the party from whom State Bank should seek recovery.

Recognize the importance of the scope of employment in determining liability and how intentional acts influence this scope.

Explain the process and rationale behind determining direct versus vicarious liability.

Distinguish between liabilities arising out of negligent hiring versus actions within the scope of employment.

Examine the role of express, implied, and apparent authority in establishing liability.

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Definitions:

Federally Protected Right

A right guaranteed by federal law, protected against infringement by the government or other individuals.

Hate Crime

Criminal acts motivated by bias or prejudice against the perceived race, religion, ethnicity, sexual orientation, or gender identity of the victim.

Bias

A tendency to lean in a certain direction, either in favor of or against a particular thing, person, or group, often in a way considered to be unfair.

Assailant

A person who physically attacks another, often causing harm or injury.