Mack is Bertha's agent and is authorized to sign checks for her. Mack signs one of Bertha's checks with his own name only. Which of the following parties is liable on the check?
A) Bertha
B) Mack
C) Mack's bank
D) Bertha's bank

Question

Quizplus · Accepted Answer

If a principal authorizes an agent to borrow money on the principal's behalf, and the agent signs her name to a note without disclosing that the signature was on behalf of the principal, the agent is liable on the note. However, if the person entitled to enforce the note can show that the principal authorized the agent to sign on his behalf, then the principal is liable on the note as well. One exception to this rule is in regards to checks. If an authorized representative signs his name as the representative of a drawer of a check without noting his representative status, but the check is payable from the an account of the represented person who is identified on the check, the signer is not liable on the check as long as his signature was authorized (3-402[c]). The rationale for this provision is that because most checks today identify the person on whose account the check is drawn, no one is deceived into thinking that the person signing the check is meant to be personally liable. Thus, in this case, Bertha (the represented person on the check) is liable on the check.

Mack Is Bertha's Agent and Is Authorized to Sign Checks