Question

Rodeo ranch's agent slim is authorized to draw checks on rodeo ranch's account in town bank. upper range corporation is a rodeo ranch supplier. slim writes a check "pay to the order of upper range [signed] slim," indorses the check in upper range's name, and deposits it in his account in verity bank. if verity bank collects payment, the ultimate party most likely to suffer the loss i

Answer 1

The party most likely to suffer the loss is Rodeo Ranch. In agency law, an agent can be authorized to enter into contracts with third parties on behalf of the principal party. Here, Rodeo Ranch is the principal, and Slim is the agent of Rodeo Ranch. Slim has entered into a contract with a third party (Upper Range) on behalf of Rodeo Ranch, which makes Rodeo Ranch liable.