The impostor rule regarding negotiable instruments:
A) is devised not to put the responsibility for determining the true identity of the payee on the drawee of a check.
B) makes the payee's signature valid even though it is a forgery.
C) does not force the maker to find the wrongdoer.
D) lays the responsibility of determining the identity of payee on later holders of an instrument.

Question

Quizplus · Accepted Answer

Article 3 of the Uniform Commercial Code establishes special rules for negotiable instruments made payable to impostors and fictitious persons. The impostor rule allows that later holder to have good title to the check by making the payee's signature valid although it is not the signature of the person with whom the drawer or maker thought he was dealing.

The Impostor Rule Regarding Negotiable Instruments