Multiple Choice
Dina, an accountant for Eagle, Inc., issues company checks payable to nonexistent persons drawn on Eagle's ac?count at First State Bank. Dina indorses the checks and deposits them in her account. Eagle discovers the theft and demands that First recredit its account. First's best defense is that
A) Dina was not authorized to issue the checks.
B) Eagle was in a better position than First to prevent the theft.
C) First did not know that the checks were not to be paid.
D) the checks were the property of Eagle, not First.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Molly signs a promissory note payable to
Q2: Sara agrees to cosign a promissory note
Q3: Transfer warranties attempt to impose liability on
Q5: If an instrument is incomplete when the
Q7: The defense of illegality is always a
Q8: Nero signs a check "pay to the
Q11: A drawer is not liable on a
Q30: Chris convinces Dion,who does not understand English,to
Q33: Eula signs a check "pay to the
Q38: Presentment warranties protect the person to whom