Anupama Drew a Check on Her Account at Mortimer Bank

Multiple Choice

Anupama drew a check on her account at Mortimer Bank payable to the order of Prahlad. When Prahlad presented the check for payment, Mortimer Bank refused to honor the check. Under these circumstances, the bank _____.

A) may be liable to Anupama for wrongfully refusing payment if Anupama has sufficient funds in her checking account to cover it
B) may be liable to Prahlad for wrongfully refusing payment if Anupama has sufficient funds in her checking account to cover it
C) has breached its transferor's warranties
D) will be liable to both Prahlad and Anupama