Tom steals Dave's checkbook, writes a check for $1,000,forges Dave's signature,and receives payment from Tom's bank.The bank paid in good faith.Who is liable to the bank for the $1,000 in this case?

A) Tom
B) Dave
C) Both Tom and Dave
D) Neither Tom nor Dave

Question

Mason McBride · Accepted Answer

Final Answer : A, Explanation :  If someone signs a person's name to a negotiable instrument without that person's authorization or approval,the signature does not bind the person whose name appears.

Tom steals Dave's checkbook, writes a check for $1,000,forges Dave's signature,and receives payment from Tom's bank.The bank paid in good faith.Who is liable to the bank for the $1,000 in this case?

A) Tom
B) Dave
C) Both Tom and Dave
D) Neither Tom nor Dave

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Learning Objectives

Related questions

Tom steals Dave's checkbook, writes a check for $1,000,forges Dave's signature,and receives payment from Tom's bank.The bank paid in good faith.Who is liable to the bank for the $1,000 in this case?A) TomB) DaveC) Both Tom and DaveD) Neither Tom nor Dave

Definitions

Learning Objectives

Learning Objectives

Related questions

Tom steals Dave's checkbook, writes a check for $1,000,forges Dave's signature,and receives payment from Tom's bank.The bank paid in good faith.Who is liable to the bank for the $1,000 in this case?

A) Tom
B) Dave
C) Both Tom and Dave
D) Neither Tom nor Dave