Asked by zaimel moses on Jun 06, 2024
Verified
Menzes is the Treasurer of ABC Corp.As such,he is authorized to sign checks for the corporation.A supplier bills ABC for a legitimate obligation.Menzes makes out a check to the supplier and signs it "ABC Corp. ,by Menzes,Treasurer." Who is liable on this check?
A) ABC only
B) Menzes only
C) ABC and Menzes
D) Neither ABC nor Menzes
Treasurer
An officer in an organization responsible for managing the organization's financial affairs, including the custody and disbursement of funds.
Obligation
A legal or moral duty to do something or refrain from doing something.
Liable
Legally responsible for something, usually resulting in a requirement to compensate for harm or damage caused.
- Acquire knowledge of the duties and obligations of parties engaged in negotiable instruments, which include the drawer, drawee, and indorser.
Verified Answer
KF
Kenyon FlakeJun 11, 2024
Final Answer :
A
Explanation :
When a representative signs an authorized signature to an instrument,then the representative is not bound provided the signature shows "unambiguously" that the signature was made on behalf of the represented person who is named in the instrument.
Learning Objectives
- Acquire knowledge of the duties and obligations of parties engaged in negotiable instruments, which include the drawer, drawee, and indorser.