Maria is the treasurer of Rex Caldwell Corporation. As treasurer, she makes out and signs the payroll checks for the company. Maria draws a payroll check payable to the order of her maid Carolyn Doss, who does not work for the company. Maria does not intend Carolyn to receive this money. She indorses Carolyn's name on the check and names herself as the indorsee. She cashes the check at a liquor store. Under which rule of forged instruments is Maria accountable?

Question

Quizplus · Accepted Answer

Maria is accountable under the fictitious payee rule, as she drew a payroll check payable to someone who does not work for the company and indorsed Carolyn's name on the check without her knowledge or consent. By doing so, Maria created a fictitious payee and converted the funds for her own personal use. She may be held liable for the misappropriation of company funds under this rule.

Maria Is the Treasurer of Rex Caldwell Corporation