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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?
Word Salad
A confused or unintelligible mixture of seemingly random words and phrases, typically associated with severe mental illness.
Schizophrenia
A severe mental disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.
Unrelated Words
A set of words that do not have any direct connection or association with each other.
Flat Affect
A severe reduction in emotional expressiveness, often characterized by a lack of facial expression or vocal tone variation.
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