Salim Carelessly Makes a Check for $100 to Abel in a Way

question 41

Multiple Choice

Salim carelessly makes a check for $100 to Abel in a way that makes it possible for someone to easily alter it. Abel alters the check to read $1,000. Under these circumstances, _____.

• A) if the drawee bank pays the check to Abel in good faith, it can charge the $1,000 to Salim's account
• B) a drawee bank can charge the $100 to Salim's account and will be liable for the rest of the altered amount
• C) the drawee bank is completely liable to Salim for accepting the altered check even if Salim's negligence contributed to the alteration
• D) Abel is liable to the drawee bank and the bank cannot charge the $1,000 to Salim's account

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Definitions:

Exasperation

A feeling of intense irritation or annoyance.

Negotiation

The process by which parties in dispute discuss and ultimately reach a mutually satisfactory agreement or solution.

Third Side

A concept in conflict resolution that suggests the involvement of an impartial third party who can help mediate or offer solutions to disputes between two other parties.

Legal Sanctions

Measures taken by a legal authority to enforce laws, ranging from fines and penalties to imprisonment.