Reference no: EM133472317

Moe Nay is the sole proprietor of Rennaissance Art Company, a business that auctions valuable works of art. At an auction on June 5, Moe sells an original Picasso drawing to Leo Nardo for $1 million. Leo pays with a signed personal check, dated June 5, drawn on his account at First Republic Bank. On June 8 of the same year, Bernie steals the check and forges Moe's indorsement. Bernie sells the check to Michael Angelo for $990,000. The next day, Michael indorses the check "without recourse" and sells it for $980,000 to Matt Tease. Two days later, Matt sells the check to Della Qua for $970,000. Matt does not indorse the check. Della deposits the check at her bank. First Republic Bank dishonor the check for insufficient funds. Assume all parties received timely notice of dishonor. No party had reason to know of the forgery.

(1) What, if anything, is Leo's maximum contract liability to Moe? Simply provide the amount in dollars. Do not explain.

(2) What, if anything, is Bernie's maximum contract liability to Moe. Simply provide the amount in dollars. Do not explain.

(3) What, if anything, is Michael's maximum contract liability to Della? Simply provide the amount in dollars. Do not explain.

(4) What, if anything, is Michael's maximum transfer warranty liability to Della? Simply provide the amount in dollars. Do not explain.

(5) What. if anything, is Matt's maximum contract liability to Della. Simply provide the amount in dollars. Do not explain.