Asked by Madison Martinez on Jun 09, 2024
Verified
Carl, without Austin's knowledge, impersonates Austin and thereby convinces Lucía, who has never seen Austin, to write a check to Austin for upcoming yard work. Carl then forges Austin's name and deposits the check into his, Carl's, account. Which of the following is true regarding whether Lucía will be liable for the amount of the check?
A) Under the forgery rule, Lucía will be held liable.
B) Under the transferor rule, Lucía will be held liable.
C) Under the payee rule, Lucía will be held liable.
D) Under the imposter rule, Lucía will be held liable.
E) Under the fictitious payee rule, Lucía will not be held liable.
Imposter Rule
A legal principle in trademark law that prohibits the use of a mark or package that is deceptively similar to an established trademark, potentially misleading consumers.
Forgery Rule
A legal principle dealing with the falsification of documents or signatures and the legal implications thereof.
- Recognize protections against the implementation of negotiable instruments and the consequences of negligence.
Verified Answer
AG
Amirea GatesJun 15, 2024
Final Answer :
D
Explanation :
Under the imposter rule, when someone is induced to issue a check to a person impersonating another, the issuer (Lucía in this case) is liable for the check even if it is endorsed (or forged in this context) by the imposter (Carl). This rule applies because Lucía intended to make the check payable to the person she believed was Austin, thus making her liable when Carl, impersonating Austin, endorses and deposits the check.
Learning Objectives
- Recognize protections against the implementation of negotiable instruments and the consequences of negligence.