Maryellen Peterson was a part-time employee of Textiles Specialties & Chemicals doing business as CS Industries. Peterson

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Maryellen Peterson was a part-time employee of Textiles Specialties & Chemicals doing business as CS Industries. Peterson signed a check in the amount of $13,789.80 on the account of CS Industries and payable to Holtrachem, Inc. The check was imprinted with name of CS Industries. However, Peterson signed only her name and did not indicate she was signing in her representative capacity on behalf of CS Industries. The drawee bank returned the check to Holtrachem due to insufficient funds in CS Industries’s account. Holtrachem filed suit against Peterson, seeking to hold her liable in her personal capacity as the drawer of the check. Is an individual who signs a check drawn on a corporate account without indicating she is signing in representative capacity personally liable on the instrument?

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Law for Business

ISBN: 978-1259722325

13th edition

Authors: A. James Barnes, Terry M. Dworkin, Eric L. Richards

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