Clyde issues a check payable to Discount Mart. Elle, Discount’s cashier, forges the store’s indorsement and deposits the check in her bank ac­count. Clyde’s bank, First State Bank, pays the check. Clyde can recover from
A. Elle, but not First State Bank.
B. First State Bank, which cannot recover from Elle.
C. First State Bank, which can recover from Elle.
D. no one.
Answer:C
Clyde issues a check payable to Discount Mart. Elle, Discount’s cashier, forges the store’s indorsement and deposits the check in her bank ac­count. Clyde’s bank, First State Bank, pays the check. Clyde can recover from
A. Elle, but not First State Bank. B. First State Bank, which cannot recover from Elle. C. First State Bank, which can recover from Elle. D. no one.