Examlex
Which of the following is a criteria that can be used to determine whether a group decision was a good one?
Fictitious Payee Rule
A legal principle that states if a negotiable instrument is made payable to a fictitious person, the entity that neglects to verify the authenticity of the payee can be held liable for any resulting loss.
Imposter Rule
A rule which holds that if one party obtains a negotiable instrument by impersonating another party and endorses it with the impersonated party’s signature, the loss falls on the drawer of the instrument.
Drawer
In financial terms, the person who writes or issues a check, directing a bank to pay the stated amount from the drawer's account.
Discharged Liability
The release or elimination of a debtor's obligation to pay a debt, typically occurring through bankruptcy proceedings.
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