Which of the following is a similarity between the fictitious payee rule and the imposter rule?
A) Both hold the drawee liable on the instrument.
B) Both hold the drawer liable on the instrument.
C) Both put the risk of loss on the forger.
D) Both put the risk of loss on the indorsee.

Question

Quizplus · Accepted Answer

Both the fictitious payee rule and the imposter rule hold the drawer liable on the instrument because the drawer is considered to have been negligent in issuing the instrument, thus bearing the risk of loss.

Which of the Following Is a Similarity Between the Fictitious