Carl, without Austin's knowledge, impersonates Austin and thereby convinces Lucía, who has never seen Austin, to write a check to Austin for upcoming yard work. Carl then forges Austin's name and deposits the check into his, Carl's, account. Which of the following is true regarding whether Lucía will be liable for the amount of the check?

Question

Quizplus · Accepted Answer

Under the imposter rule, when someone is induced to issue a check to a person impersonating another, the issuer (Lucía in this case) is liable for the check even if it is endorsed (or forged in this context) by the imposter (Carl). This rule applies because Lucía intended to make the check payable to the person she believed was Austin, thus making her liable when Carl, impersonating Austin, endorses and deposits the check.

Carl, Without Austin's Knowledge, Impersonates Austin and Thereby Convinces Lucía