Question

Dr. Rick LaCombe, an optometrist, was practicing optometry as a sole proprietorship and doing business as LaCombe Eye Center. His business took in checks for services and products made out in various ways: Dr. Rick LaCombe; Rick LaCombe, O.D.; Rick LaCombe, M.D.; Rick LaCombe; and LaCombe Eye Center (all refer red to collectively as LaCombe). Lana Slyfield was the business director at the Eye Care Center, and as such she was the individual in charge at the front desk. Slyfi eld started embezzling from LaCombe by stealing checks from the mail. She did this by simply placing her account number under forged endorsements on the checks and depositing the checks into her account at Bank One. On some checks Slyfield added LaCombe's initials as part of her forged endorsement, stating that LaCombe's signature "didn't really look like a signature, so I guessed that it would make it look like more of a signature." On others, she simply inscribed "For Deposit Only," followed by her account number. No employee of the bank ever questioned her regarding her depositing checks made payable to LaCombe into her personal account. How does the UCC treat forged signatures on checks? Who should be liable for the amount of the check?


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  • CreatedOctober 21, 2015
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