In Southwest Bank,the case in the text in which an employee of the plaintiff fraudulently deposited into her personal account at the defending bank checks for which the plaintiff was payee.The plaintiff sued the defending bank for checks endorsed by the employee "for deposit only" and with no endorsement from the plaintiff.Which of the following was the result in this case?
A)The court ruled that because employee fraud was involved,the defending bank held no responsibility to the plaintiff.
B)The court ruled that because a fraud was involved,regardless of whether or not it was on the part of plaintiff's employee,the defending bank held no responsibility to the plaintiff.
C)The court ruled that because the defending bank was merely the depositary bank,it held no responsibility to the plaintiff.
D)The court ruled that the defending bank was liable to the plaintiff.
E)The court ruled that the defending bank was entitled to assume that the depositor was entitled to deposit the checks.

Question

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A)The trial court found Southwest Bank liable.The court held that under Texas commercial code,"a depository bank warrants to a payor bank to which a missing endorsement check is presented for payment that it was entitled to enforce the draft on behalf of a person entitled to enforce the draft.Thus,a depository bank is liable for conversion as a matter of law when it accepts for deposit into a third party's account checks that were not endorsed in the name of the payee."
B)The trial court found Southwest Bank liable.The court held that under Texas commercial code,"a depository bank warrants to a payor bank to which a missing endorsement check is presented for payment that it was entitled to enforce the draft on behalf of a person entitled to enforce the draft.Thus,a depository bank is liable for conversion as a matter of law when it accepts for deposit into a third party's account checks that were not endorsed in the name of the payee."
C)The trial court found Southwest Bank liable.The court held that under Texas commercial code,"a depository bank warrants to a payor bank to which a missing endorsement check is presented for payment that it was entitled to enforce the draft on behalf of a person entitled to enforce the draft.Thus,a depository bank is liable for conversion as a matter of law when it accepts for deposit into a third party's account checks that were not endorsed in the name of the payee."
D)The trial court found Southwest Bank liable.The court held that under Texas commercial code,"a depository bank warrants to a payor bank to which a missing endorsement check is presented for payment that it was entitled to enforce the draft on behalf of a person entitled to enforce the draft.Thus,a depository bank is liable for conversion as a matter of law when it accepts for deposit into a third party's account checks that were not endorsed in the name of the payee."
E)The trial court found Southwest Bank liable.The court held that under Texas commercial code,"a depository bank warrants to a payor bank to which a missing endorsement check is presented for payment that it was entitled to enforce the draft on behalf of a person entitled to enforce the draft.Thus,a depository bank is liable for conversion as a matter of law when it accepts for deposit into a third party's account checks that were not endorsed in the name of the payee."

In Southwest Bank,the Case in the Text in Which an Employee