Nick steals two checks from Pauline-a blank check and a check payable to the order of Retail Outlets Company, drawn on Pauline's account with State Bank. Nick forges Pauline's signature on the blank check and makes it payable to himself. Nick forges Retail Outlets's indorsement on the back of the check payable to Retail Outlets, and adds "Pay to the order of Nick." At United Credit Union, Nick indorses the back of both checks with his own name and gives them to United for cash. United does not know about the theft or the forged signatures and presents the checks to State Bank, which pays them. Pauline, who was not negligent, discovers the forgeries and asks State Bank to recredit her account. Who suffers the loss on each check? United Credit Union
Nick steals two checks from Pauline-a blank check and a check payable to the order of Retail Outlets Company, drawn on Pauline's account with State Bank. Nick forges Pauline's signature on the blank check and makes it payable to himself. Nick forges Retail Outlets's indorsement on the back of the check payable to Retail Outlets, and adds "Pay to the order of Nick." At United Credit Union, Nick indorses the back of both checks with his own name and gives them to United for cash. United does not know about the theft or the forged signatures and presents the checks to State Bank, which pays them. Pauline, who was not negligent, discovers the forgeries and asks State Bank to recredit her account. Who suffers the loss on each check? United Credit Union
Business Its Legal Ethical & Global Environment
10th Edition
ISBN:9781305224414
Author:JENNINGS
Publisher:JENNINGS
Chapter9: Business Torts
Section: Chapter Questions
Problem 3QAP
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Question
![Nick steals two checks from Pauline a blank check and a check payable to the order of Retail Outlets Company,
drawn on Pauline's account with State Bank. Nick forges Pauline's signature on the blank check and makes it payable
to himself. Nick forges Retail Outlets's indorsement on the back of the check payable to Retail Outlets, and adds "Pay
to the order of Nick." At United Credit Union, Nick indorses the back of both checks with his own name and gives
them to United for cash. United does not know about the theft or the forged signatures and presents the checks to State
Bank, which pays them. Pauline, who was not negligent, discovers the forgeries and asks State Bank to recredit her
account. Who suffers the loss on each check?
United Credit Union
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Transcribed Image Text:Nick steals two checks from Pauline a blank check and a check payable to the order of Retail Outlets Company,
drawn on Pauline's account with State Bank. Nick forges Pauline's signature on the blank check and makes it payable
to himself. Nick forges Retail Outlets's indorsement on the back of the check payable to Retail Outlets, and adds "Pay
to the order of Nick." At United Credit Union, Nick indorses the back of both checks with his own name and gives
them to United for cash. United does not know about the theft or the forged signatures and presents the checks to State
Bank, which pays them. Pauline, who was not negligent, discovers the forgeries and asks State Bank to recredit her
account. Who suffers the loss on each check?
United Credit Union
Previous Page
Next Page
Page 1 of 50
O
H
W
ENG
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