Generally,assuming no negligence on the part of the victim,when an endorsement on a check has been forged and properly reported to the bank,which party is the party ultimately liable for the loss?
A)The drawer
B)The first party to accept the forged instrument
C)The first legitimate endorser of the instrument
D)The bank of the first party to accept the forged instrument
E)The bank of the drawer,even if proper notice was given of the forgery

Question

Quizplus · Accepted Answer

According to Uniform Commercial Code Section 4-207(a)(2),generally,when an endorsement has been forged,the first party to accept the forged instrument is ultimately liable for the loss because a forged endorsement does not legally transfer title.

Generally,assuming No Negligence on the Part of the Victim,when an Endorsement