unauthorized signatures and alterations

Question 1

imposter situation

Answer 1

drawer takes the loss

any person’s indorsement = effective

Question 2

fictitious payee

Answer 2

person whose intent determines where an instrument is payable creates a fake payee

Question 3

unintended payee

Answer 3

person whose intent determines where instrument is payable creates an unintended payee

Question 4

result of unintended payee or fictitious payee

Answer 4

anyone in possession = holder

indorsement by anyone = indorsement

loss on employer

Question 5

what if an employee is entrusted with check writing privileges forges an instrument?

Answer 5

loss on employer

Question 6

negligence contributing to forgery or alteration

Answer 6

failure to exercise ordinary care

failure substantially contributed to loss

Question 7

what is an alteration

Answer 7

unauthorized modification altering party’s obligation

Question 8

what is the result of an alteration?

Answer 8

obligor discharged of duty

Question 9

what if bank pays an altered instrument?

Answer 9

they may enforce the OG terms

Question 10

incomplete instrument

Answer 10

contents show signor intended instument to be completed

Question 11

when is an incomplete instrument enforceable

Answer 11

authorized