Brandy forges Caleb's signature on a check "payable to the order of Brandy" drawn on Caleb's account in Downtown Bank. Caleb's forged signature is
A) effective if an innocent third party accepts the check.
B) effective to the degree that it matches Caleb's genuine signature.
C) effective to the extent that Downtown Bank debits Caleb's account.
D) not effective.

Question

Brandy forges Caleb's signature on a check "payable to the order of Brandy" drawn on Caleb's account in Downtown Bank. Caleb's forged signature is​
A) ​effective if an innocent third party accepts the check.
B) ​effective to the degree that it matches Caleb's genuine signature.
C) ​effective to the extent that Downtown Bank debits Caleb's account.
D) ​not effective.

Quizplus · Accepted Answer

Forging Caleb's signature on the check is illegal and not a valid signature. Therefore, the check is not effective, and Brandy cannot receive payment from Caleb's account.

Brandy Forges Caleb's Signature on a Check "Payable to the Order