To avoid liability for negligence, a customer must examine monthly bank statements and canceled checks promptly and with reasonable care, and report any forged signatures to the bank.

Question

Quizplus · Accepted Answer

Under the Uniform Commercial Code (UCC), customers have a duty to examine their bank statements and canceled checks within a reasonable time and report any discrepancies, such as forged signatures, to their bank promptly to avoid liability. Failure to do so can result in the customer being held liable for the forged checks.

To Avoid Liability for Negligence, a Customer Must Examine Monthly