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Max is the clerk for the Superior Construction Company. He makes out the payroll; prepares all of the payroll checks and reconciles the bank statements for the firm. He decides to increase her income by padding the payroll; accordingly, he makes out a check in the name of someone who does not exist. He then endorses the check with the payee’s name and his name and cashes the check himself at Lane Street Bank where the company has its account.
Under the fictitious payee/imposter rule, will Superior and not the bank be liable for this check?
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Max is the clerk for the Superior Construction Company. He makes out the payroll; prepares all of th...
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