AFP
CTP · Question #379
(Topic 4) CT Check Cashing routinely cashes payroll checks from JD Software. Someone presents a fraudulent check from JD Software to CT Check Cashing. The fraudulent item looks virtually identical to
The correct answer is D. Positive pay is designed to reject the item, but JD Software may ultimately be held liable. See the full explanation below for the reasoning.
Question
- (Topic 4)
CT Check Cashing routinely cashes payroll checks from JD Software. Someone presents a fraudulent check from JD Software to CT Check Cashing. The fraudulent item looks virtually identical to JD Software's regular payroll checks. CT Check Cashing pays the person cashing the check the amount for which it is issued. CT Check Cashing later discovers that the check was fraudulent and wants JD Software to reimburse them for the amount of the check. Which of the following statements is correct?
Options
- AFraudulent endorsement has occurred and JD Software will not be held liable for this
- BThis item is payable through draft so JD Software will be liable to CT Check Cashing for
- CJD Software has a controlled disbursement account so CT Check Cashing will not have
- DPositive pay is designed to reject the item, but JD Software may ultimately be held liable
How the community answered
(43 responses)- A9% (4)
- B2% (1)
- C2% (1)
- D86% (37)
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