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:

Stress

A state of mental or emotional strain or tension resulting from adverse or demanding circumstances.

Adaptation-level Phenomenon

The psychological process by which individuals adjust their expectations based on their previous experiences.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed, leading to decreased motivation and learning capacity.

Release of Cortisol

The Release of Cortisol refers to the secretion of the hormone cortisol by the adrenal glands, often in response to stress, which plays a crucial role in many body functions.