Real World Problems
Triffin would not be able to claim holder in due course status. Jermielem Merriwether never signed his check. Even though the clerk from A-1 printed his name on the check, which was not a proper signature. Merriwether was the only one who was authorized to sign the check. Since the check was never properly signed, there was no requirement that it had to be paid. 24-4
Yes, the rule states that a drawer is not liable on an unauthorized indorsement. The exceptions to this rule are: 1. Any unauthorized signature is wholly inoperative unless the person whose name is signed ratifies it. 2. A person may be precluded from denying the effectiveness of an unauthorized signature if the person’s negligence led to the authorized signature. The first principle would apply to this case. Romanelli did not authorize Schor’s signature on the checks. Schor signed a blank line on the signature card without Romanelli’s knowledge. 25-3
Wells Fargo Bank is most likely to suffer the loss in this case. They were the first party to take the check with the forged indorsement. 26-3
The basis for this objection is that Frances owned Su Ru Chen the principal of loyalty to act solely for Chen’s benefit. Chen was unaware that Frances was acting in the interest of her finance, Chiu Chang Chan. This created a conflict of interest in which Frances was in a position opposite her principal, Su Ru Chen. 26-4
The Pappases could be liable on this contract. If a principal is partially disclosed or undisclosed, the principal and the agent may be liable for nonperformance. The payment checks were payable to Kevin and deposited into his personal account not an Outside Creations account. Also during the signing of the contract, the contract didn’t mention Forever Green and neither did the Pappas. The Crisses were unaware of Forever Green. 27-3
The DES’s denial of unemployment compensation was wrong. Mary Garas was only informed of a job opening with...
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