32 TEST BANK B—UNIT FIVE: NEGOTIABLE INSTRUMENTSB20.Pete knowingly divulges to Media Exposure magazine information aboutRandy’s e-money payments to City Bank. The payments were in trans-mission to City Bank when Pete, without the consent of Randy or CityBank, discovered and revealed them. This may be a violation of
PAGE:519TYPE:=NAT: AACSB Reflective AICPA LegalESSAY QUESTIONSB1.Joy steals a check from Kyle, forges his signature, and transfers the checkto Loco Loans, Inc., for value. Unaware that the signature is not Kyle’s,Loco Loans presents the check to Metro Bank, the drawee, which cashes thecheck. Kyle discovers the forgery and insists that Metro recredit hisaccount. Can Metro refuse? If not, from whom can the bank recover?
PAGES:506–507TYPE:=NAT: AACSB Reflective AICPA Decision Modeling