Elliot's payroll check was made payable "to the order of Elliot Lewis." Elliot deposited the check in Union Trust bank but never indorsed it.Elliot has no warranty liability on the check because his signature is not on the instrument.

Question

Quizplus · Accepted Answer

Although Elliot did not endorse the check, he can still be held liable for any unauthorized endorsements or fraud committed by someone else who gains possession of the check. Without Elliot's endorsement, the bank may also refuse to accept or cash the check.

Elliot's Payroll Check Was Made Payable "To the Order of Elliot