Maya stole a check from Orhan payable to the order of Orhan. Maya forged Orhan's signature and presented the check for payment at Winston Bank, which honored the check. If Orhan sues Winston Bank for the amount of the check, under what theory, can Orhan recover the funds from the bank?
A) Conversion
B) Fraud
C) Unfair and deceptive practices
D) Fictitious payee rule

Question

Quizplus · Accepted Answer

If a bank pays a check that contains a forged indorsement, the bank has converted the check by wrongfully paying it. Here, Winston Bank becomes liable for the face amount of the check to Orhan.

Maya Stole a Check from Orhan Payable to the Order