Nick Steals Two Checks from Pauline-A Blank Check and a Check

question 57

Essay

Nick steals two checks from Pauline-a blank check and a check payable to the order of Retail Outlets Company, drawn on Pauline's account with State Bank. Nick forges Pauline's signature on the blank check and makes it payable to himself. Nick forges Retail Outlets's indorsement on the back of the check payable to Retail Outlets, and adds "Pay to the order of Nick." At United Credit Union, Nick indorses the back of both checks with his own name and gives them to United for cash. United does not know about the theft or the forged signatures and presents the checks to State Bank, which pays them. Pauline, who was not negligent, discovers the forgeries and asks State Bank to recredit her account. Who suffers the loss on each check?

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Definitions:

Gray Matter

The region of the brain and spinal cord that is rich in nerve cell bodies and is darker than the surrounding white matter due to its higher neuronal density.

Cerebrum

The largest part of the brain, responsible for voluntary activities, sensation, thought, reasoning, and memory.

Cortex

The outer layer of the cerebrum in the brain, involved in higher brain functions such as thought and action.

Pineal Body

A small endocrine gland in the brain that produces melatonin, a hormone that regulates sleep patterns.