BS Law Exam II,Q2 - If her account was charged then the...

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BS Law Exam II, Q 2 James Tilley BAA 3210 As soon as Jenny realized that her check book had been stolen she should have immediately contacted Intrastate bank and informed them. At this time Jenny should have given the Bank an oral order to stop payment on all remaining checks until the problem is resolved. Jenny can not be held liable for the charges and the funds cannot be deducted from her account. When the bank compares the signature on the check with the signature on file at the bank it will not match.
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Unformatted text preview: If her account was charged then the funds must be refunded back into her account. This action is called a forged instrument and the check is not properly payable. The bank can only recover from Yummy Treats if they had knowledge that the check was forged. Yummy Treats should verify each check with some type of identification before accepting a check. Richard is ultimately responsible because he forged the check. In most cases the forger of the check is seldom found to recover the funds....
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This note was uploaded on 10/24/2011 for the course LAW BB3210 taught by Professor Profsantiago during the Spring '11 term at Columbia Southern University, Orange Beach.

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