Consider the following analytical problems related to improperly paid out checks

1. Stop Payment Order

• Number of errors on the stop payment form = 1
• Check presented in the same branch/same city in which the SPO was received
• The bank had 4 1/2 days from the date that the SPO was given til the date the check was presented

Is the A/H more likely / equally likely / less likely to recover from the bank for improper payment? (CIRCLE)

Pursuant to which theory? __________________________

SHOW YOUR WORK (Calculations in tabular form) BELOW (DO NOT WRITE SENTENCES IN EXPLANATION):

2. Forged Checks

Consider the following sequence of events in which an integer indicates the number of forged checks improperly drawn from the A/Hs current account:

Forger	February	March	April	May
A				3000
B	500	600		900
C			1000	1100

means that no forged checks are present.

A/H finds all six forged checks in May. (A/H never would have otherwise have detected the previous forgeries.)

1. How much ($) can the account holder recover? [Identify forger(s) by letter on the basis of whose illegal acts recovery from the bank in possible.]

2. Suppose that the February forged check of B of $500 and the April forged check of C of $1000 had not been subject to a signature check. How would (if at all) this effect the outcome to your answer above? Explain in the space provided ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________