Legal Environment 5th Edition by Jeffrey Beatty,Susan Samuelson

Exercise 18

Banks are liable for forged checks except in the case of the three rules (Imposter Rule, Fictitious Payee Rule, and the Employee Indorsement Rule). Do you think this is the proper allocation of liability? Why should banks be liable for forged checks, in this era of automated check machines? Alternatively, could you argue that the three rules provide too much protection to banks?