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Can you summarize MNST 336.3-405?
UNIFORM COMMERCIAL CODE > EMPLOYER'S RESPONSIBILITY FOR FRAUDULENT ENDORSEMENT BY EMPLOYEE.
Short Summary
This section of the Minnesota Statutes, specifically under the Trade Regulations and Consumer Protection section of the Uniform Commercial Code, addresses the employer’s responsibility for fraudulent endorsement by an employee. The section defines key terms such as ’employee’ and ‘fraudulent endorsement’. It states that if an employer entrusts an employee with responsibility for an instrument and the employee or someone acting with the employee makes a fraudulent endorsement, the endorsement is effective as if made by the person to whom the instrument is payable. However, if the person paying or taking the instrument fails to exercise ordinary care and this failure contributes to the loss resulting from the fraud, the person bearing the loss may recover from the person failing to exercise ordinary care. The section also provides criteria for determining if an endorsement is made in the name of the person to whom the instrument is payable. Overall, this section clarifies the legal implications and responsibilities of employers in cases of fraudulent endorsement by their employees.
Whom does it apply to?
Employers and employees
What does it govern?
EMPLOYER'S RESPONSIBILITY FOR FRAUDULENT ENDORSEMENT BY EMPLOYEE
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota