Kurt writes a check on his account at Liquidity Bank to Mandy, a fa?mous singer. The person claiming to be Mandy is an imposter, however, named Nila. Nila indorses the check to Outsize Portions, a casino, restaurant, and nightclub, for which Liquidity Bank cashes it. Ultimately, the loss will most likely fall on

Question

Quizplus · Accepted Answer

Kurt will most likely be responsible for the loss as he is the one who issued the check to the imposter posing as Mandy. It is his responsibility to ensure that he is paying the correct person before issuing a check. While Liquidity Bank may face some liability for cashing the check, they are not ultimately responsible for verifying the identity of the payee. Mandy is also not responsible as she did not receive the funds and did not endorse the check to the casino. Outsize Portions may face some liability for accepting a check from an imposter, but ultimately the responsibility falls on Kurt as the account holder who issued the check.

Kurt Writes a Check on His Account at Liquidity Bank