Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 1

Some American Express money orders were stolen. They had the preprinted signature of Louis Gerstner, then the chairman of American Express, but the amount, payee, and date were blank. Chuckie's, a check-cashing business, cashed three of them, not knowing they were stolen. However, American Express refused to pay Chuckle's for the money orders. In the ensuing lawsuit, the court had to decide whether the money orders were negotiable. Did the preprinted signature make them signed writings?