Rodeo Ranch's agent Slim is authorized to write checks on Rodeo Ranch's account in Town Bank.Upper Range Corporation is a Rodeo Ranch supplier.Slim writes a check on Rodeo Ranch's account "pay to the order of Upper Range [signed] Slim," indorses it in Upper Range's name,and deposits it in his own account in Verity Bank.If Verity Bank collects payment,the ultimate party most likely to suffer the loss is
A)no one.
B)Rodeo Ranch.
C)Town Bank.
D)Upper Range.

Question

Quizplus · Accepted Answer

Slim, Rodeo Ranch's agent, fraudulently deposited the check intended for Upper Range into his own account, resulting in Rodeo Ranch losing the money. Since Upper Range did not participate in or benefit from the fraud, they are not responsible for the loss. Town Bank may also experience a loss due to the fraudulent check, but they may be able to recover the funds from Rodeo Ranch or through insurance. Therefore, the most likely party to suffer the loss is Rodeo Ranch.

Rodeo Ranch's Agent Slim Is Authorized to Write Checks on Rodeo