What is the similarity between the fictitious payee rule and the imposter rule?
A)Both hold the drawee liable to the instrument.
B)Both hold the drawer liable to the instrument.
C)Both put the risk of loss on the forger.
D)Both put the risk of loss on the indorsee.

Question

Quizplus · Accepted Answer

Both the fictitious payee rule and the imposter rule hold the drawer liable because they involve situations where the drawer is deceived into issuing an instrument, and thus, the drawer bears the risk of loss.

What Is the Similarity Between the Fictitious Payee Rule and the Imposter