Logan is Mining Corporation's agent and is authorized to write checks on Mining's account in Northwest Bank. Logan writes a check "pay to the order of Oceanside Resort." Logan signs the check "Mining Corporation, by Logan, agent." Northwest Bank dishonors the check. Liability extends to
A) Logan.
B) Oceanside.
C) Mining Corporation.
D) no one.

Question

Logan is Mining Corporation's agent and is authorized to write checks on Mining's account in Northwest Bank. Logan writes a check "pay to the order of Oceanside Resort." Logan signs the check "Mining Corporation, by Logan, agent." Northwest Bank dishonors the check. Liability extends to​
A) ​Logan.
B) ​Oceanside.
C) ​Mining Corporation.
D) ​no one.

Quizplus · Accepted Answer

Mining Corporation is ultimately responsible for the actions of their authorized agent, Logan, and must make good on any checks written on their account by Logan. Oceanside Resort may have a claim against Mining Corporation for the amount of the dishonored check. Logan may also face disciplinary action or legal consequences for misuse of his authority as an agent.

Logan Is Mining Corporation's Agent and Is Authorized to Write