In accord with banking industry practices,US Bank's computers are pro?grammed to verify signatures only on checks exceeding $1,000.US Bank cashes a check for $900 on the forged signature of its customer Vita.Under UCC Article 3,with respect to reasonable commercial standards,US Bank is
A)definitely liable.
B)definitely not liable.
C)liable if any other bank verifies all signatures on all checks.
D)liable if Vita has never written or cashed a check for more than $899.

Question

Quizplus · Accepted Answer

Under UCC Article 3, banks are not required to verify signatures on checks below a certain threshold, such as $1,000, as it is considered a reasonable commercial standard. Therefore, US Bank is not liable for cashing a check for $900 with a forged signature.

In Accord with Banking Industry Practices,US Bank's Computers Are Pro?grammed