Firenze is the holder of an instrument payable to him (Firenze) or his order, with Florence as maker. Firenze then indorsed it as follows: "Subject to no recourse, pay to Florencia. Signed, Firenze." When Florencia went to collect from Florence, it turned out that Florence's signature was forged. Florencia now sues Firenze for collection. Will it prosper? a. No, because Firenze made a qualified indorsement. b. No, because a qualified indorsement does not include the warranty of genuineness. c. Yes, because Firenze, as a conditional indorser, warrants that the note is genuine. d. Yes, because Firenze, as a qualified indorser, warrants that the note is genuine.
Firenze is the holder of an instrument payable to him (Firenze) or his order, with Florence as maker. Firenze then indorsed it as follows: "Subject to no recourse, pay to Florencia. Signed, Firenze." When Florencia went to collect from Florence, it turned out that Florence's signature was forged. Florencia now sues Firenze for collection. Will it prosper? a. No, because Firenze made a qualified indorsement. b. No, because a qualified indorsement does not include the warranty of genuineness. c. Yes, because Firenze, as a conditional indorser, warrants that the note is genuine. d. Yes, because Firenze, as a qualified indorser, warrants that the note is genuine.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 19P
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Firenze is the holder of an instrument payable to him (Firenze) or his order, with Florence as maker. Firenze then indorsed it as follows: "Subject to no recourse, pay to Florencia. Signed, Firenze." When Florencia went to collect from Florence, it turned out that Florence's signature was forged. Florencia now sues Firenze for collection. Will it prosper?
a. No, because Firenze made a qualified indorsement.
b. No, because a qualified indorsement does not include the warranty of genuineness.
c. Yes, because Firenze, as a conditional indorser, warrants that the note is genuine.
d. Yes, because Firenze, as a qualified indorser, warrants that the note is genuine.
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