Jess receives a check from Kelly. Without Jess's knowledge, Leo indorses it in his own name and deposits it in his account at Metro Bank. In Jess's subsequent suit against the bank for the money, the court will most likely rule in favor of
A) Jess, because Leo's signature is not authorized.
B) Jess, because Metro Bank is not a holder in due course.
C) Metro Bank, because Leo's signature is not authorized.
D) Metro Bank, because it is a holder in due course.

Question

Jess receives a check from Kelly. Without Jess's knowledge, Leo indorses it in his own name and deposits it in his account at Metro Bank. In Jess's subsequent suit against the bank for the money, the court will most likely rule in favor of​
A) ​Jess, because Leo's signature is not authorized.
B) ​Jess, because Metro Bank is not a holder in due course.
C) ​Metro Bank, because Leo's signature is not authorized.
D) ​Metro Bank, because it is a holder in due course.

Quizplus · Accepted Answer

Leo's signature is not authorized, making the indorsement invalid, so Jess is likely to win the suit against the bank.

Jess Receives a Check from Kelly