According to Revised Article 3 of the UCC,the risk of loss from fraudulent indorsements by employees:
A)should fall on the holder in due course.
B)should fall on the employer.
C)should fall on the bank.
D)should fall on the employee.

Question

Quizplus · Accepted Answer

Revised Article 3 specifically addresses employer responsibility for fraudulent indorsements by employees and adopts the principle that the risk of loss for such indorsements by employees who are entrusted with responsibilities for instruments (primarily checks)should fall on the employer rather than on the bank that takes the check or pays it.

According to Revised Article 3 of the UCC,the Risk of Loss