Mowatt worked as a bookkeeper for the law firm of McCarthy, Kenney & Reidy, P.C., which had several branch offices in the Boston area. Part of Mowatt's job involved preparing checks payable to the partners in other offices for the authorized signature of a partner of the firm. On numerous occasions, Mowatt wrote such checks with no intention of transmitting them to the payee-partners. Instead, after they had been signed by an authorized partner, Mowatt forged indorsements on the checks and then either cashed them or deposited them in one of three bank accounts that he had opened for this purpose. The fraudulent scheme went on for a year and a half, and when the forgeries were finally discovered, the law firm demanded that the bank credit its account with the full amount of loss that it had sustained as a result of the forgeries. The bank refused to do so, and the law firm brought an action against the bank. Which party had to bear the loss arising from the forgeries, the law firm or the drawee-bank? Defend your conclusion. Would there be any difference in your answer if these were not checks, but ACH (direct deposit) transfers?