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Discuss the legal issues arising in the following situations. Support your answer based on the Bills of Exchange Act and relevant case laws. (a) Rita

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Discuss the legal issues arising in the following situations. Support your answer based on the Bills of Exchange Act and relevant case laws. (a) Rita has launched a beauty salon in Alamesra by the name of Rita's Beauty Salon. She took two employees to help her in her salon. Rita opened a current account in the name of the Salon with Bank Ceria in Kota Kinabalu. All her employees are not allowed to sign cheque on behalf of her salon. Unknown to Rita, Nana, one the employees, took a cheque of the salon. Nana has filled in the cheque with the amount of RM10,000.00 and forged Rita's signature. Nana then went to Bank Ceria to cash the cheque. Mr Mr Don, one the clerks of Bank Ceria felt suspicious with the signature on the cheque but cashed the cheque anyway. Rita now wanted to sue Bank Ceria for neglience. In a separate situation, Rita has ordered fresh flower from Mr Chong and gave a bill of exchange for payment. On the bill, it is stated "Pay to Chong..if satisfied with the flowers sent". Sasa, one of the employees, has been ordered by Rita to examine the flowers and accept only if they are fresh. Rita also has bought one set of teak furniture to be used in the salon. She has paid the furniture with a crossed cheque "Not negotiable" amounting to RM15,000.00 to Zen Jati Sdn Bhd. Zen, the owner of Zen Jati went to Bank Ceria to deposit the cheque into the account of Zen Jati. Bank Ceria, however, has deposited the cheque into the account of Zeno Jati Sdn Bhd, a shop belonged to Zeno, Zen's brother. When Zen knew about it, he immediately informed Bank Ceria but Bank Ceria has delayed in taking action until all the money in the account has been taken away by Zeno. Zen was furious and decided to sue Bank Ceria. Advise the relevant parties

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