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[House Painting] Graciela Reyes Signed a Check Agreeing to Pay

Question 65

Multiple Choice

[House Painting] Graciela Reyes signed a check agreeing to pay, "Annie Greene, Marney Harris," $1,000. The payment was for painting her house. A problem with the note was that it spelled Annie's last name, "Greene," whereas Annie spells it simply, "Green." Annie and Marney were having a disagreement regarding how to split up the funds for painting the house. Annie proceeded to sign the check on the back, "Annie Green," and presented it to Hiro Murakami to satisfy a debt that she owed him. Hiro Murakami endorsed the check on the back, "Hiro Murakami, without recourse," and gave it to his nephew, Nate, who took it to the bank for payment. Meanwhile, Graciela has stopped payment on the check because, following a rainstorm, all the paint on the house looked spotted. Marney is unhappy because she did not obtain any of the funds and stated that Annie could not legally endorse the instrument because it misspelled her name and also because she, Marney, did not sign it.
-Which of the following is true regarding the complaint of Marney that she did not also endorse the instrument?


A) She is correct because both names are required in order to provide legal endorsement.
B) She is correct in that her name was needed for legal endorsement, but that is only the case because of the misspelling of Annie's name.
C) She is correct because regardless of whether the payees are listed with no designation as to whether they are alternate or joint, or whether the words, "or" or "and" are used to designated payees, any listed payee must endorse a note in order for it to be properly payable.
D) She is incorrect because Annie properly endorsed the note, and only her signature was needed.
E) She is incorrect, but only if it can be established that Hiro Murakami lacked knowledge that she had not given her consent to the form of the endorsement.

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