Super Company's agent Tyra is authorized to draw checks on Super's account in Unity Bank. The checks are preprinted with Super's name. Tyra writes a check "pay to the order of Vern [signed] Tyra." Vern negotiates the check to Weber, who does not know about the agency relationship. If Weber presents the check for payment and Unity Bank dishonors it, liability extends to

Question

Quizplus · Accepted Answer

Super is liable because Tyra was acting within her authority as an agent of Super Company when she wrote the check. The preprinted checks with Super's name indicate that the check is drawn on Super's account, making Super responsible for honoring it.

Super Company's Agent Tyra Is Authorized to Draw Checks on Super's