Exam 28: Liability of Parties

Sarah has a checking account at First Bank.Orrin steals one of her blank checks, writes a check for $250 to himself, and then forges Sarah's signature.Orrin then indorses the instrument to Paul in payment of a debt.Paul presents the instrument to First Bank for payment.At First Bank's request, Paul indorses the instrument, and the bank then pays him $250.Which of the following is correct?

Thomas is the treasurer of Padgett, Inc.He has authority to sign on behalf of the company.One day, he signs a note as follows: "Thomas Seggway, as treasurer." The company's name does not appear on the note.Is the company liable on the note? Is Thomas liable on the note? Explain.

Which of the following is a warranty of the transferor?

How can drawers and indorsers disclaim liability on an instrument? Does any different rule apply to drawers of checks?