Tom steals Dave's checkbook, writes a check for $1,000,forges Dave's signature,and receives payment from Tom's bank.The bank paid in good faith.Who is liable to the bank for the $1,000 in this case?
A)Tom
B)Dave
C)Both Tom and Dave
D)Neither Tom nor Dave

Question

Tom steals Dave's checkbook, writes a check for $1,000,forges Dave's signature,and receives payment from Tom's bank.The bank paid in good faith.Who is liable to the bank for the $1,000 in this case?
A)Tom
B)Dave
C)Both Tom and Dave
D)Neither Tom nor Dave

Quizplus · Accepted Answer

If someone signs a person's name to a negotiable instrument without that person's authorization or approval,the signature does not bind the person whose name appears.

Tom Steals Dave's Checkbook, Writes a Check for $1,000,forges Dave's Signature,and Receives