When will a party's negligence not permit the party to escape liability for an unauthorized signature?

A) Any type of negligence will result in a party being unable to escape liability for an unauthorized signature.
B) The issue of negligence is irrelevant as to whether a party may escape liability for an unauthorized signature,because a party is always liable for an unauthorized signature.
C) A party who is negligent may not escape liability for an unauthorized signature if the party whose signature was forged behaved so negligently as to substantially contribute to the making of the forgery.
D) A party's negligence will not permit the party to escape liability for an unauthorized signature,but only if the negligence amounts to a finding of recklessness.
E) A party's negligence will not permit the party to escape liability for an unauthorized signature,but only if the negligence involved a certified check.

Question

Angel Garcia · Accepted Answer

Final Answer : C, Explanation :  According to Uniform Commercial Code Section 3-406,if the party whose signature was forged behaved so negligently as to substantially contribute to ...the making of a forged signature, the party might not escape liability.

Definitions

Learning Objectives

Learning Objectives

Related questions