Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 13

A certified check for $16 payable to Sam Goody was altered (after it had been certified) to $1,600. The check was then used to pay for merchandise that had been ordered from Goody costing $1,600. The drawee bank refused to honor the check because of the alteration. Is the bank liable to Goody for the $1,600? (Sam Goody, Inc. v. Franklin National Bank of Long Island, N.Y. 57 Misc.2d 193)