In which of the following situations has conversion NOT occurred?
A)When a drawee bank pays an instrument containing a forged indorsement
B)When a drawee to whom a draft is delivered for acceptance properly returns it upon request
C)When a bank pays an instrument containing only one of two required indorsements
D)When a thief transfers possession of an instrument to someone who knows of the theft

Question

Quizplus · Accepted Answer

Conversion has not occurred in situation B because the drawee is simply returning the draft upon request, which is a proper action and does not involve unauthorized control over the instrument.

In Which of the Following Situations Has Conversion NOT Occurred