Xena writes a check on her Boise Bank account to Hercules in the amount of $1,000,and gives it to Mutley.On the way to give Hercules the check,Mutley expertly alters the check by adding an extra "zero," to make it $10,000,payable instead to Mutley.Boise Bank honored the check payable to Mutley in the amount of $10,000.Regretfully,Xena has no recourse against Boise Bank.

Question

Quizplus · Accepted Answer

Xena may have recourse against Boise Bank under the Uniform Commercial Code (UCC) provisions dealing with altered checks. The bank may be liable for the loss if it failed to exercise ordinary care in paying the altered check.

Xena Writes a Check on Her Boise Bank Account to Hercules