Mike approaches you and tells you that he is a sales representative for The Good Hands Massage and Spa,a national chain of health spas.He tells you there is a special half price sale and you write a check for a one year membership payable to The Good Hands Massage and Spa and give it to Mike.Mike in fact does not represent Good Hands.He forges an endorsement and cashes the check.Which rule applies in this situation?
A) the imposter rule
B) the fictitious payee rule
C) the transfer warranty rule
D) the shelter principle rule
E) the presentment warranty rule

Question

Quizplus · Accepted Answer

The imposter rule applies because Mike pretended to be a representative of The Good Hands Massage and Spa, and you were deceived into making the check payable to the imposter.

Mike Approaches You and Tells You That He Is a Sales