1. Marty, an accountant for G & O Transport Incorporated, begins issuing company checks payable to nonexistent persons drawn on G & O's account at First National Bank. Marty indorses the checks and deposits them in his own account. G & O discovers the theft and demands that the bank recredit its account. G & O will likely

	A.	prevail, because Marty was not authorized to issue company checks to himself.
	B.	prevail, because the bank should not have paid checks issued to nonexistent persons.
	C.	not prevail, because the bank did not know that the checks were not to be paid.
	D.	not prevail, because G & O was in a better position than the bank to prevent the theft.

2. Mona, an employee of National Corporation (NC), is authorized to use a signed NC check to buy supplies. Mona fills out the check so that it states an amount $500 in excess of the purchase price and cashes it at Office Supply Store. When Office Supply Store presents the check for payment, it may recover

	A.	nothing.
	B.	the amount by which the check exceeded the price of the supplies.
	C.	the amount stated in the check.
	D.	the price of the supplies.