Blane indorsed his paycheck in blank and cashed it at a store where he was a well-known customer. The check was then stolen from the store. The store immediately notified Blane's employer, who gave the drawee bank a stop payment order. The thief indorsed the check in a false name and transferred the check to a gas station/convenience store, which took the check in good faith and for value. The
check was dishonored when presented to the drawee bank. Which of the following statements is true?
A) The thief was a holder within the Code definition and could negotiate the check.
B) The thief could not negotiate the check because he forged the indorsement.
C) The gas station/convenience store is entitled to nothing from the drawer of the check.
D) The gas station/convenience store could not be a holder in due course because it took the check from a thief.
A
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