ucc, article3

For many years the plaintiff, Carlo Basch, owned and operated a retail drugstore - - Basch's Pharmacy - - in Stoneham, and since the establishment of such business he had maintained a commercial account in its name with the defendant bank at the main office at No. 1 Powell in said city. In May, 2018, he employed as a part-time bookkeeper one Herbert C. Lahr, who thereupon took charge of the office routine matters in connection with his employer's bank account and faithfully performed his work for the ensuing five months. About the first of November of said year, Lahr conceived the scheme of fraudulently diverting from this bank account sums of money for his own use, and between November 3, 2018, and September 9, 2019, he forged plaintiff's signature to a series of one hundred and twenty-seven checks payable to himself, all but four of which called for the payment of $3,250.00. These checks, cashed in various places by Lahr and in due course presented to the defendant's main office, were paid by the bank and, together with the genuine checks drawn during the same period, were charged to plaintiff's account. Included in the cashed checks were post-dated checks and checks with no date. Some were excellent facsimiles of a genuine signature and some were poor quality. Plaintiff did not examine the bank's monthly statements or inspect the accompanying canceled checks as they were forwarded to him at regular intervals, but he delegated that duty to his bookkeeper Lahr. Consequently, the forgeries were not discovered by plaintiff until the early part of September, 2019, after Lahr had absconded. Prior thereto plaintiff had realized that his profits were decreasing, but inasmuch as no monthly profit and loss statements were made and a physical inventory was taken only once a year, he had simply assigned the decline to poor business. Immediately upon learning of the forgeries plaintiff notified the bank and demanded that it restore to him the total amount paid on the forged checks.After investigating the matter, the bank refused to make such reimbursement of plaintiff's account, and plaintiff thereupon commenced an action against the bank to recover such sum. The cause was tried before a jury and a verdict was rendered against the bank for the aggregate sum of the forgeries. From the judgment entered accordingly in favor of the plaintiff, the defendant bank now prosecutes an appeal. What result on appeal? Fully analyze your answer.