Mary Juana wrote a check on her account at First Bank for $23,000 payable to the order of Eagle Construction Company. Lu Zer, who was an Eagle employee, deposited Mary’s check in his personal account at Second Bank, without first having someone indorse it. When the check was presented for payment, First Bank paid. Only later did it realize that the check had no indorsement. Meanwhile, Lu Zer has stolen the funds and disappeared
a. What warranties are present here?
b. Who is liable for the missing funds and why?
Answer of a.
In my view as Mary wrote a check to the order of Eagle Construction Company (means to pay this company), so it is written warranties for first bank to process the payment to Eagle Construction Company and not to anyone else.
Answer of b.
First Bank is liable for missing funds, as they did not check the cheque properly before releasing the funds
Mary Juana wrote a check on her account at First Bank for $23,000 payable to the...
11. Ivy signs a check payable to Jon and gives it to him. Jon indorses the back of the check by signing his name, and transfers the check to Ked. To negotiate the check to Luis, Ked must a. write "Ked" on the back. b. write "pay to the order of Luis [signed] Ked" on the back. c. deliver the check to Luis. d. obtain Luis's signature on the back. 12. Rollo obtains a check payable to his order from...
Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...