JimBob, a guest in Jimbo's house, opens Jimbo's desk and writes a check to himself on Jimbo's checking account, forging Jimbo's signature.He indorses the check " JimBob Saunders" and presents it to Jimbo's bank for payment.If the bank pays, can it collect from Jimbo's account?
A) No, because bank should have known the signature is forged.
B) No, because Jimbo did not know of the check.
C) Yes, because JimBob is the real payee.
D) Yes, because Jimbo's name is on the check.

Question

JimBob, a guest in Jimbo's house, opens Jimbo's desk and writes a check to himself on Jimbo's checking account, forging Jimbo's signature.He indorses the check " JimBob Saunders" and presents it to Jimbo's bank for payment.If the bank pays, can it collect from Jimbo's account?
A) No, because bank should have known the signature is forged.
B) No, because Jimbo  did not know of the check.
C) Yes, because JimBob is the real payee.
D) Yes, because Jimbo's name is on the check.

Quizplus · Accepted Answer

BThe bank cannot collect from Jimbo's account because the signature on the check was forged, which means Jimbo did not authorize the transaction. Additionally, Jimbo's lack of knowledge about the check further invalidates the transaction from his account.

JimBob, a Guest in Jimbo's House, Opens Jimbo's Desk and Writes