Bubba, a good old country boy who has moved to the big city, had never locked the doors at his house in the country. Now that he has moved to the big city, he still often forgets to lock his doors. On one of these days, someone came into his home and stole, among other items, his checkbook and debit card. Bubba only writes a few checks a month, so he did not know until 2 weeks later that the checkbook and debit card were missing. Bubba had partially filled out a check, which he had planned to use to make final payment to a carpenter who was to do some work the following week in Bubbas condominium. Bubba had signed the check and filled in the carpenters name, but had not filled in the amount because he did not know the carpenters charges. It turns out that the thief was this carpenter who had noticed that Bubba did not keep his door locked when he went to Bubbas to estimate the job. The thief filled out the amount on the signed check as $1,500. In addition to the incomplete check made to him, the thief forged three other checks and deposited them. Lastly, when Bubba and the carpenter agreed on the work, Bubba wrote a $200 check to the carpenter that had not been paid when Bubba discovered the thefts. Bubba placed a valid stop-payment order with his bank, but the bank paid this check anyway 5 days later. All of the other checks were also paid by Bubbas bank. In addition, the thief used the debit card in a $3,000 transaction. Discuss the liabilities of the parties.

Who bears the loss?

How much on each check are they liable for?

The incomplete check:

The 3 forged checks

The $200 check to the carpenter that Bubba put a stop-payment order on:

The debit card transaction: