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:

Iritis

An inflammation of the iris, the colored part of the eye, which can cause pain, redness, and potentially, loss of vision if not treated.

Astigmatism

A condition in which the cornea has an abnormal shape, which causes blurred images during near or distant vision.

Strabismus

A condition that results in a lack of parallel visual axes of the eyes; commonly called crossed eyes.

Presbyopia

A condition associated with aging in which the eye exhibits a progressively diminished ability to focus on near objects.