Asked by Madison Forte on Apr 27, 2024
Verified
Carl,without Eddie's knowledge,impersonates Eddie and thereby convinces Connie,who has never seen Eddie,to write a check to Eddie.Carl forges Eddie's name on the check and deposits it into his,Carl's,account.Which of the following is true regarding whether Connie will be liable for the amount of the check?
A) Under the forgery rule,Connie will be held liable.
B) Under the transferor rule,Connie will be held liable.
C) Under the payee rule,Connie will be held liable.
D) Under the imposter rule,Connie will be held liable.
E) Under the fictitious payee rule,Connie will not be held liable.
Imposter Rule
A legal principle concerning negotiable instruments which states that if an impostor induces a payor to issue a check made payable to the impostor, the drawer is liable for the amount to a holder in due course.
Forgery Rule
A legal principle that addresses the falsification of documents and the consequences associated with such acts.
- Gaining insights into the legal implications and historical precedents concerning fraudulent behaviors and the endorsement of negotiable instruments through unauthorized signatures.
Verified Answer
Learning Objectives
- Gaining insights into the legal implications and historical precedents concerning fraudulent behaviors and the endorsement of negotiable instruments through unauthorized signatures.
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