ABC Corp transfers an instrument to Wilson Inc An employee at ABC Corp alters the amount on the note to 24 200 from 12 000

Question

ABC Corp transfers an instrument to Wilson Inc An employee at ABC Corp alters the amount on the note to 24 200 from 12 000 before selling it to Wilson Inc Wilson Inc then transfers the instrument to Blowtorch Inc Blowtorch Inc accepts the instrument but later discovers that the instrument has been altered Blowtorch approaches Wilson Inc and asks them to return the money It is then discovered that an employee at ABC Corp made the alteration in the instrument and kept the extra amount paid by Wilson Inc for himself Since the difference between the altered amount and the original amount is large the employee says he cannot pay the amount Which of the following is true in this situation a Wilson Inc cannot claim the extra money from ABC Corp because it has already transferred the instrument to Blowtorch Inc O b ABC Corp is responsible for its employee s actions and is liable because its employee cannot pay c Blowtorch Inc cannot claim the money since it accepted the instrument in the first place d ABC Corp is not liable regardless of the financial situation of its employee because the employee kept the additional amount for himself Check My Work 1 remaining

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