Kennison fraudulently indorses a check, written out to Adam Canon, that she stole from Adam, and gives the check to Cathi to pay for her driving services. Shortly thereafter when Cathi attempts to cash the check at Callaghan Banking, the bank refuses to honor it stating that there had been a stop payment order as the check had been stolen. According to the general rules of the Uniform Commercial Code, which entity assumes liability?

Question

Quizplus · Accepted Answer

Kennison assumes liability because she fraudulently endorsed and passed on a stolen check, making her responsible for the act of theft and fraud under the Uniform Commercial Code.

Kennison Fraudulently Indorses a Check, Written Out to Adam Canon