Martha draws a check payable to the order of Stella. Stella indorses the check to Karen. But Leslie steals the check from Karen, forges Karen's indorsement, and cashes the check at a liquor store.
-When the forgery is exposed, who can the liquor store legally recover from?

Question

Martha draws a check payable to the order of Stella. Stella indorses the check to Karen. But Leslie steals the check from Karen,  forges Karen's indorsement,  and cashes the check at a liquor store.
-When the forgery is exposed, who can the liquor store legally recover from?

Quizplus · Accepted Answer

The liquor store can legally recover from Leslie, as they are the one who committed the forgery and fraudulently obtained the money from the check. Martha, Stella, and Karen are not responsible for the actions of Leslie.

Martha Draws a Check Payable to the Order of Stella