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Paula Is a Sales Agent for the Rock Insurance Company

Question 20

Multiple Choice

Paula is a sales agent for The Rock Insurance Company.Paula accepts a check from a customer made payable to her in payment for the premium on an insurance policy.Prior to depositing the check in The Rock's bank account,Paula indorses the check as follows: "The Rock Insurance Company,by Paula Beck,agent." Assuming that Paula has authority to indorse company checks,if the check is dishonored,then between Paula,The Rock,and the bank


A) Paula only will be liable.
B) Paula and The Rock will be liable.
C) The Rock only will be liable.
D) The bank will be stuck with the dishonored check.

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