Rachel,who owes Sam $500,draws a check payable to Sam on her checking account at City Bank.Rachel signs the check but leaves the amount blank.Sam fraudulently fills in $10,000 and presents the check to City Bank,which pays it.In this case,________.

Question

Quizplus · Accepted Answer

City Bank can charge Rachel's account for the full amount because Rachel's negligence in leaving the amount blank contributed to the fraud. Banks typically have the right to rely on the face value of checks presented for payment.

Rachel,who Owes Sam $500,draws a Check Payable to Sam on Her