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Which of the Following Is the Most Likely Result If

Question 33

Multiple Choice

Which of the following is the most likely result if Mehdi attempts to require that the bank reimburse him for the value of the check cashed by Caileen?


A) Because the check was a bearer instrument,the bank was authorized to pay Caileen;and Mehdi has no rights against the bank.
B) The check was an order instrument,and the bank must take the loss because it should only have provided funds to Mehdi.
C) Because the check was an order instrument,the bank was within its rights to pay Caileen because she presented the check;and Mehdi has no rights against the bank.
D) Regardless of what type of instrument the check was,the bank had no right to cash the check when presented by Caileen unless the bank can establish by a preponderance of the evidence that Caileen misrepresented herself as an agent of Mehdi.
E) Because the check was a bearer instrument,the bank must take the loss because it should only have provided the funds to Mehdi.

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