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?
A) Martha
B) Leslie
C) Karen
D) Stella

Question

Quizplus · Accepted Answer

The liquor store can only legally recover from the person who cashed the check, which is Leslie. Martha is not liable because she wrote the check properly, and Karen and Stella are not liable because they did not forge the indorsement or cash the check themselves.

Martha Draws a Check Payable to the Order of Stella