In Lor-Mar/Toto v.Constitution Bank,where the bank cashed bogus checks written on Lor-Mar's company account and the checks had signatures that looked like the stamped signatures Lor-Mar used,the courts held:
A) the bank was liable since the risk of loss from forged facsimile signatures had not been clearly transferred to the customer
B) the bank was liable even though the risk of loss from forged facsimile signatures had not been clearly transferred to the customer
C) the bank was not liable because the risk of loss from forged facsimile signatures had not been clearly transferred to the customer
D) the bank was liable since banks are always liable for mistakes involving forged signatures
E) none of the other choices are correct
Correct Answer:
Verified
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