Celine issues a note "payable to the order of Celine," forges Dash's signature as the maker, and indorses the note "pay to Erica." Celine sells the note to Erica, who negotiates it by indorsement and delivery to Forest. Forest can extend liability to
A) no one.
B) Celine.
C) Dash.
D) all of the parties.

Question

Celine issues a note "payable to the order of Celine," forges Dash's signature as the maker, and indorses the note "pay to Erica." Celine sells the note to Erica, who negotiates it by indorsement and delivery to Forest. Forest can extend liability to​
A) ​no one.
B) ​Celine.
C) ​Dash.
D) ​all of the parties.

Quizplus · Accepted Answer

Celine, who forged Dash's signature, is liable for the note as the forger. Forest, as a holder in due course, cannot hold Dash liable because his signature was forged.

Celine Issues a Note "Payable to the Order of Celine