Blane indorsed his paycheck in blank and cashed it at a store where he was a well-known customer.The check was then stolen from the store.The store immediately notified Blane's employer,who gave the drawee bank a stop payment order.The thief indorsed the check in a false name and transferred the check to a gas station/convenience store,which took the check in good faith and for value.The check was dishonored when presented to the drawee bank.Which of the following statements is true?
A) The thief was a holder within the Code definition and could negotiate the check.
B) The thief could not negotiate the check because he forged the indorsement.
C) The gas station/convenience store is entitled to nothing from the drawer of the check.
D) The gas station/convenience store could not be a holder in due course because it took the check from a thief.

Question

Quizplus · Accepted Answer

The Answer of Blane indorsed his paycheck in blank and cashed it at a store where he was a well-known customer.The check was then stolen from the store.The store immediately notified Blane's employer,who gave the drawee bank a stop payment order.The thief indorsed the check in a false name and transferred the check to a gas station/convenience store,which took the check in good faith and for value.The check was dishonored when presented to the drawee bank.Which of the following statements is true?
A) The thief was a holder within the Code definition and could negotiate the check.
B) The thief could not negotiate the check because he forged the indorsement.
C) The gas station/convenience store is entitled to nothing from the drawer of the check.
D) The gas station/convenience store could not be a holder in due course because it took the check from a thief.

Blane Indorsed His Paycheck in Blank and Cashed It at a Store