Susie Smith Signed a Note Agreeing to Pay, "Annie Greene

question 104

Multiple Choice

Susie Smith signed a note agreeing to pay, "Annie Greene, Mary Hodge," $1,000. The payment was for painting her house. An issue with the note was that it spelled Annie's last name, "Greene," whereas Annie spells it simply, "Green." Annie and Mary had a disagreement regarding how to split up the funds for painting the house. Annie proceeded to sign the note on the back, "Annie Green," and presented it to Bill Brown to satisfy a debt that she owed him. Bill Brown endorsed the note on the back and took it to the bank for payment. Mary is unhappy because she did not obtain any of the funds and stated that Annie could not legally endorse the instrument because it misspelled her name and also because Mary did sign it. Which of the following is true regarding the complaint of Mary that she did not also endorse the instrument?

• A) She is correct because both names are required in order to provide legal endorsement.
• B) She is correct in that her name was needed for legal endorsement, but that is only the case because of the misspelling of Annie's name.
• C) She is correct because regardless of whether the payees are listed with no designation as to whether they are alternate or joint, or whether the words, "or," or "and," are used to designated payees, any listed payee must endorse a note in order for it to be properly payable.
• D) She is incorrect because Annie properly endorsed the note, and only her signature was needed.
• E) She is incorrect, but only if it can be established that Bill Brown lacked knowledge that she had not given her consent to the form of the endorsement.

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Definitions:

Moderately Draining

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Secondary Dressings

Additional dressings applied over a primary dressing to secure it in place or absorb excess fluid.

Abdominal Binder

A wide compression belt that encircles the abdomen, used to provide support and stability after surgery or injury.

Pulmonary Function

A description of the capabilities and health of the lungs, often assessed through tests that measure lung volume, capacity, rates of flow, and gas exchange.