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Ch 28 Banking Discussion

Ch 28 Banking Discussion

Q Who is liable for the amounts of the forged checks? Why?

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In this situation, I think that the liability for the amounts of the forged checks rests with Roy. This is because the bank had not been informed by Roy about the forgeries as a duty of obligation to inform the bank within thirty days of presentation of the check. Therefore, Roy could not claim negligence for making payment in case of the forged checks as there could not be any standing granted to Roy by the court. It is important for a company or an individual to inform the bank about any case of unethicality or illegality before the processing of a check. If any check is processed, then there is no point informing the bank about any case of unethicality or illegality.