Waylon uses a signature stamp to sign his checks and carelessly leaves it accessible to third parties.Jeremy finds the stamp and uses it to write several checks without Waylon's authorization.Renee,who takes a check for value and in good faith,will be subject to Waylon's defense of unauthorized signature.

Question

Quizplus · Accepted Answer

Renee, as a holder in due course who took the check for value, in good faith, and without notice of any defect, is not subject to Waylon's defense of unauthorized signature and can enforce the check.

Waylon Uses a Signature Stamp to Sign His Checks and Carelessly