Zachary,who has been authorized to write a check from a company account to pay employees,draws bonus checks from the company account for five fictitious employees,endorses the checks in their names,and deposits those into his own bank account.Which of the following is true regarding whether the company will be required to take the loss on the checks?

Question

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A)When an employee authorized to write checks does so for fake employees,the potential employees have no interest i.e. ,no right to payment)in the checks and are thus called fictitious payees UCC 3-404,3-405).The act of the company's agent is not considered forgery [UCC 3-404b)2)].The company will be liable for the checks.
B)When an employee authorized to write checks does so for fake employees,the potential employees have no interest i.e. ,no right to payment)in the checks and are thus called fictitious payees UCC 3-404,3-405).The act of the company's agent is not considered forgery [UCC 3-404b)2)].The company will be liable for the checks.
C)When an employee authorized to write checks does so for fake employees,the potential employees have no interest i.e. ,no right to payment)in the checks and are thus called fictitious payees UCC 3-404,3-405).The act of the company's agent is not considered forgery [UCC 3-404b)2)].The company will be liable for the checks.
D)When an employee authorized to write checks does so for fake employees,the potential employees have no interest i.e. ,no right to payment)in the checks and are thus called fictitious payees UCC 3-404,3-405).The act of the company's agent is not considered forgery [UCC 3-404b)2)].The company will be liable for the checks.
E)When an employee authorized to write checks does so for fake employees,the potential employees have no interest i.e. ,no right to payment)in the checks and are thus called fictitious payees UCC 3-404,3-405).The act of the company's agent is not considered forgery [UCC 3-404b)2)].The company will be liable for the checks.

Zachary,who Has Been Authorized to Write a Check from a Company