Stan is a mid-level manager with Redfine Corporation, but has no authority to sign Redfine checks.

1. Stan is a mid-level manager with Redfine Corporation, but has no authority to sign Redfine checks. Stan orders merchandise from Jabberwocky Company delivered to his home and pays with a Redfine check, signing “Redfine Corp. by Stan, Manger.” Jabberwocky does not know that Stan has no authority to sign the check. Who is liable on the check, and why?

2. CC has in its possession an instrument dated May 1, 2012. The instrument is payable to the order of AA “on June 1, 2012,” for $10,000. In the upper left corner is an address for BB and in the lower right corner is the signature of “DD.” In the lower left corner is stamped “ACCEPTED: BB, May 5, 2012.” On the back is the signature of “AA.” Who, if anyone, is primarily liable on this instrumenton May 1? On May 5? Who, if anyone, is secondarily liable on this instrument?

3. Vern issues a check for $5,000, dated June 1, to Sissy. The check is drawn on Old Dominion Bank. Sissy indorses the check and transfers it to Gene. What will trigger the liability of Vern and Sissy on the check?

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