Question
Gary goes grocery shopping and carelessly leaves his checkbook in his shopping cart. His checkbook,with two blank checks remaining,is stolen by Dolores. On May 5,
Gary goes grocery shopping and carelessly leaves his checkbook in his shopping cart. His checkbook,with two blank checks remaining,is stolen by Dolores. On May 5, Dolores forges Garys name on a check for $10 and cashes the check at Garys bank, Citizens Bank of Middletown. Gary has not reported the loss of his blank checks to his bank. On June 1, Gary receives his monthly bank statement and copies of canceled checks from Citizens Bank, including the forged check,but he does not examine the canceled checks.On June 20,Dolores forges Garys last check.This check is for $1,000 and is cashed at Eastern City Bank, a bank with which Dolores has previously done business.Eastern City Bank puts the check through the collection process,and Citizens Bank honors it. On July 1, on receipt of his bank statement and canceled checks covering June transactions, Gary discovers both forgeries and immediately notifies Citizens Bank. Dolores cannot be found. Gary claims that Citizens Bank must recredit his account for both checks, as his signature was forged. Discuss (shortly)fully Garys claim. Thanks!
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