Maria is the treasurer of Rex Caldwell Corporations. 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 accountableA) good faith rule

B) exclusionary rule

C) imposter rule

D) fictitious payee rule

Question

Social Studies

Belinda Fritz

12 September, 12:45

Maria is the treasurer of Rex Caldwell Corporations. 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 accountableA) good faith rule

B) exclusionary rule

C) imposter rule

D) fictitious payee rule

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Answers (1)

Know the Answer?

Dane Dunn · Answer 1

Fictitious payee rule

Explanation:

Fictitious payee rule applies when a person cause an instrument to be issued to a person (payee) who has no valid reason to receive the payment or no interest in the instrument, this ensure forgery of the payee's name will then be effective to pass the instrument to the transferees later as we can see in the case of Maria, she included the name of her maid for the purpose of using the check for herself and not for the sake of Carolyn