The Big Cheese Restaurant, Inc. has a checking account at Cheesehead Bank. Darren Dodgers, the president of the Big Cheese Restaurant, writes a check from this account, payable to Bears Bakery, to pay for food supplies, but leaves the amount blank by accident. The cost of the food supplies would have been $1,000. As soon as Darren realizes his mistake, he phones the bank and requests a stop payment order on the check Three days later, an employee of Bears Bakery, Dick Noles, fraudulently writes in $5,000 and presents the check to Cheesehead Bank, which pays it. The Big Cheese Restaurant OA can recover from either Darren Dodgers or Dick Noles OB. can recover the full $5,000 from Cheesehead Bank Oc. may only recover against Darren Dodgers OD. may only recover against Dick Noles OE. can recover $4,000 from Cheesehead Bank

The Big Cheese Restaurant, Inc. has a checking account at Cheesehead Bank. Darren Dodgers, the president of the Big Cheese Restaurant, writes a check from this account, payable to Bears Bakery, to pay for food supplies, but leaves the amount blank by accident. The cost of the food supplies would have been $1,000. As soon as Darren realizes his mistake, he phones the bank and requests a stop payment order on the check Three days later, an employee of Bears Bakery, Dick Noles, fraudulently writes in $5,000 and presents the check to Cheesehead Bank, which pays it. The Big Cheese Restaurant OA can recover from either Darren Dodgers or Dick Noles OB. can recover the full $5,000 from Cheesehead Bank Oc. may only recover against Darren Dodgers OD. may only recover against Dick Noles OE. can recover $4,000 from Cheesehead Bank

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter24: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 12CQ

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