What principles determine who between a principal and an


Question: Case Problem with Sample Answer. Ameripay, LLC, is a payroll services company that, among other things, issues payroll checks to the employees of its clients. In July 2002, Nu Tribe Radio Networks, Inc. (NTRN), in New York City, hired Ameripay. Under their agreement, Ameripay set up an account for NTRN's behalf at Commerce Bank. NTRN agreed to deposit funds in the account to cover its payroll obligations. Arthur Piacentini, an owner of Ameripay, was an authorized signatory on the account. On the checks, NTRN was the only identified company, and Piacentini's signature appeared without indicating his status. At the end of the month, four NTRN employees cashed their payroll checks, which Piacentini had signed, at A-1 Check Cashing Emporium, Inc. The checks were returned dishonored. Ameripay had stopped their payment because it did not receive the funds from NTRN. A-1 assigned its interest in the checks to Robert Triffin, who filed a suit in a New Jersey state court against Ameripay. What principles determine who, between a principal and an agent, is liable for the amount of an unpaid instrument? How do those principles apply in this case? Is Ameripay liable? Why or why not? [Triffin v. Ameripay, LLC, 368 N.J.Super. 587, 847 A.2d 628 (App.Div. 2004)]

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