Forger Drafted a Promissory Note and Forged Fred's Signature on It.Before

question 23

Essay

Forger drafted a promissory note and forged Fred's signature on it.Before he could do anything with it,Thief stole it,and transferred it to Commercial Loan Co.,for value.Commercial usually did not buy commercial paper from people who walk in off the street,but business was slow,so they took it.Commercial had no actual notice of the forgery,but the manager in charge thought the circumstances were suspicious.On the note's due date,Commercial demanded payment from Fred.Obviously,Fred refused to pay.Commercial sues Fred on the note.Assuming the note qualifies as a negotiable instrument in all aspects not mentioned above,discuss the probable outcome of this suit.

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Definitions:

MC (Marginal Cost)

The additional cost incurred by producing one more unit of a good or service, critical in determining the optimal level of production.

AVC (Average Variable Cost)

The cost of labor, materials, and other variable expenses divided by the quantity of output produced, excluding fixed costs.

AFC (Average Fixed Cost)

The fixed costs (expenses that do not change with the level of production) divided by the quantity of goods or services produced, typically decreasing as production increases.

Marginal Cost

The cost increase that comes with producing an additional unit of a product or service.