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

Exercise 9

A nonprofit corporation had a checking account at Fleet Bank. An officer of the corporation borrowed money from the bank by falsely representing that he was acting as an agent on behalf of the corporation. The corporation had never done anything to indicate that the officer had authority to borrow money. Is the nonprofit corporation entitled to recover from the bank the money paid to the officer? (Fleet Bank v. Consola, Ricciletti, 703 N.Y.S.2d 182)