Question
City Bank issues to Dave a cashier's check. Evan steals the check, forges Dave's signature, adds his own signature, and cashes it at First County
City Bank issues to Dave a cashier's check. Evan steals the check, forges Dave's signature,
adds his own signature, and cashes it at First County Bank, which obtains payment from City.
Dave discovers the theft and obtains a replacement check from City, which sues First. The
court will likely rule in favor of?
A. City, because First breached the presentment warranty that there are no unauthorized endorsements on the check.
B. City, because First can recover the money from Evan.
C. First, because City breached the presentment warranty that there are no unauthorized endorsements on the check.
D. First, because City can recover from Dave.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started