Credit Equipment Corp. v. Steiner

Elmer Steiner and his cousin, Lester Steiner, owned and operated a business at Kidron, Ohio, known as “Kidron Feed and Supply.” They purchased from Carbozite Protective Coatings, Inc., some paint, and paid for the paint by means of trade acceptances which were honored in due course.

Thereafter, three other trade acceptances were sent to the bank where the Steiners did business, by The Credit Equipment Corp., to whom they had been endorsed, by Carbozite Protective Coatings, Inc., for value and before their due date. These acceptances, which were purported to have been signed by Lester Steiner,…