In which of the following situations has conversion NOT occurred?
A)When an instrument is paid on a forged indorsement.
B)When a drawee to whom a draft is delivered for acceptance properly returns it upon request.
C)When any person to whom an instrument is delivered for payment refuses on demand to pay or to return it.
D)When a drawee to whom a draft is delivered for payment refuses to return it on demand.

Question

Quizplus · Accepted Answer

Conversion occurs when someone wrongfully exercises control over someone else's property, interfering with their ownership rights. In options A, C, and D, conversion has occurred because the wrongfully exercised control over the instrument. However, in option B, the drawee properly returned the draft upon request, so no conversion occurred.

In Which of the Following Situations Has Conversion NOT Occurred