Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 17

Charles Risner owned Metro Electric Maintenance Inc., and Computer Power and Technology Inc., which both had checking accounts with Bank One Corp. Metro had customers and frequent deposits, but Computer was dormant. Risner's daughter Janece was the office manager and bookkeeper for both corporations. She deposited checks payable to Metro into Computer's account. The checks had no indorsement. Janece would then write checks to herself from Computer's account. When Charles discovered the embezzlement, he sued Bank One and Janece. Were the funds validly negotiated to Computer?