Article 3 of the Uniform Commercial Code establishes certain rules for assessing liability when a negotiable instrument has been paid over a(n)________ indorsement.
A) stipulated
B) absolute
C) accessory
D) principal
E) forged

Question

Quizplus · Accepted Answer

Article 3 of the Uniform Commercial Code stipulates that when a negotiable instrument has been paid over a forged endorsement, the person who made the payment is not relieved of liability to the true owner of the instrument. Therefore, the correct answer is E) forged.

Article 3 of the Uniform Commercial Code Establishes Certain Rules