Is a Counterfeit Cashiers Check “False Pretenses”

Our insured car dealer took a fake cashiers check for the purchase of an automobile. He let the customer take the car. 10 days later his bank called him and told him the cashiers check was counterfeit. My question is: would the exclusion 2.(2) apply under the attached False Pretense form? I can’t find anything addressing fake checks. It seems to me, based on what I am reading in FC&S, the exclusion would apply because FP coverage is not meant to protect an insured who does not practice sound business practices when taking checks. Thank you.