Book Opener

CHAPTERASSESSMENTParticipating as a Member of a TeamIn groups of three or four, interview a bankteller or other official to find out what kindsof mistakes people make when writing andindorsing checks. Use your notes to preparea detailed presentation.10. Report your findings to the class.11. Structure your presentation so that eachgroup member has a chance to speak infront of the class.12. Use visual aids or presentation softwareto enhance your presentation.13. Compare notes with the other groups.14. Evaluate your group’s presentation. Whatdid you do well? In what areas could youimprove?Signature StampAntonia sells cosmetics through a catalog. Hercustomers pay her directly for the products theypurchase. Antonia receives hundreds of checkseach month, all made payable to her. Instead ofindorsing all of the checks by hand, she decidedto have a rubber stamp of her signature made.Using a rubber stamp will save Antonia a greatdeal of time.Debate15. If Antonia uses the rubber stamp, are thechecks considered indorsed?16. Is it legal to use a rubber stamp to indorsechecks?17. What are some possible disadvantages ofusing a rubber stamp?For the following cases, give your decision andstate a legal principle that applies.18. A check was payable to Quan and Jie Lee.Can the check be indorsed by either one ofthem to be negotiated? Why or why not?19. Michael Reed finds a check payable toIrene Lupi on a downtown street. IsMichael a holder? Why or why not?20. Suppose the check Michael found in theprevious case had been indorsed in blankby Irene Lupi. Would Michael beconsidered a holder? Why or why not?21. Suppose the check Michael found inproblem 19 was indorsed by Irene Lupi, witha special indorsement to Charles MacLean.Is Michael a holder? Why or why not?22. Suppose, in problem 20, that Michael alsoindorses the check and cashes it at a bank.On what two legal grounds does the bankhave recourse against him if the check doesnot clear?23. Jessica Patton unknowingly lost a blankcheck that she kept in her wallet for emergencysituations. Abby Turner found thecheck in the restroom of a local mall andmade the check out to herself for the sumof $500, forging Patton’s signature. Patton’sbank did not catch the forged signatureand cashed the check. Does Patton haveany recourse against her bank? Explainyour answer.24. Ted Wilmot, a landscaper, received a checkfor $350 from a client. Wilmot was indesperate need of money and planned tocash the check immediately. When hereached the drive-up window at his bank,Wilmot noticed that the check was madeout to Theodore Wilmot. Ted’s given namewas simply Ted. What might Wilmot’s bankrequire him to do?556 Unit 5: Using Your Purchasing Power