Qita has the authority to issue checks on behalf of Retail Center. Qita creates a dozen unauthorized checks that she deposits in her account at State Bank. The payee line on each check is blank. In a suit between Retail Center and State Bank over the loss, the party or parties most likely to be held liable is
A)Retail Center.
B)State Bank.
C)Retail Center and State Bank, in prorated amounts.
D)none of the choices.

Question

Quizplus · Accepted Answer

Retail Center is likely to be held liable because Qita had the authority to issue checks, and the payee line was left blank, which could be seen as negligence on Retail Center's part in supervising or controlling the use of its checks.

Qita Has the Authority to Issue Checks on Behalf of Retail