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

Question

Quizplus · Accepted Answer

The court will likely rule in favor of Bob because Dan's signature was not authorized, making the endorsement invalid. Elm City Bank cannot claim holder in due course status because the endorsement was forged.

Bob Receives a Check from Chris