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Jane is an employee of Tyco, Inc. and she is in charge of payroll. Every week she issues a check in the name of a fictitious employee. Jane cashes the check at a local bank by indorsing the check in the name of the fictitious employee. With respect to these checks, which statement is correct?

a. Tyco is not liable because Jane committed fraud against Tyco.
b. Tyco is liable because it authorized Jane to issue payroll checks.
c. Tyco is liable for the full amount of the checks because Jane is broke.
d. Tyco had no knowledge of this embezzlement, so the bank must refund the overpayments.

User Kinexus
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1 Answer

5 votes

Answer:

b. Tyco is liable because it authorized Jane to issue payroll checks.

Step-by-step explanation:

There is the company responsibility to put the right person for the specific job. Here in the given situation Jane would not be a liable person for an vital position of the company. in the case when the fraud done by the employee so the firm would be liable as the company provide the authorization to the person who have to perform that job

Therefore, the option b is correct

User Rex Butler
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