Balene's: Stan Johnson's Signature on a Check
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Stan Johnson is the secretary of Balene's Inc., a small corporation. Before an important meeting with some potential clients, Stan purchases some supplies from a local office supply store. Stan takes one of the company's checks that are imprinted with the company's name to pay for this merchandise. In his rush before the meeting, Stan simply signs the check "Stan Johnson."
Which of the following is true in this situation?
a. Stan will not have any liability on this chekc because the check was imprinted with Balzene's name.
b. Stan and Balzene's will share primary liability on this check
c. Balzene's has exclusive primary liability at the time the check is written.
d. Stan will have exclusive primary liability on this check.
e. Stan is not an agent of Balzene's because he did not sign as an agent
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Solution Summary
Stan Johnson's Signature on a Check for Balene's is analyzed. The solution determined which situation is true regarding liabilities.
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Check Signature
Stan Johnson is the secretary of Balene's Inc., a small corporation. Before an important meeting with some potential clients, Stan purchases some supplies from a local office supply store. Stan takes one of the company's checks that are imprinted with the company's name to pay for this merchandise. In his rush before the meeting, Stan simply signs the check "Stan Johnson."
Which of the following is true in this situation?
a) Stan will not have any liability on this check because the check was imprinted with Balzene's name.
b) Stan and Balzene's will share primary liability on this check.
c) Balzene's has exclusive ...
Purchase this Solution
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