Business Law Today 8th Edition by Roger LeRoy Miller,Gaylord Jentz

Exercise 4

Eve Anderson works as an accounts payable clerk for Future Tech, Inc, a software development and marketing firm. Eve, who has worked for the firm for years, is authorized to sign company checks, on which Future Tech's name and address are printed.
Alice works in Future Tech's accounts payable department with Eve but does not have the authority to sign company checks. Alice steals a blank Future Tech check from Eve's desk, forges Eve's signature, and cashes the check at Friendly Services, Inc., a check-cashing service. Friendly Services, which does not know that Eve's signature was forged, presents the check for payment to United First Bank. United First cashes the check. When the check is returned with Future Tech's bank statement, Eve discovers the forgery. Future Tech tells United First to recredit its account. Can United First legally refuse? If not, can United First recover the amount that it paid to Friendly Services?