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Qiara Steals a Check from Reese, Forges His Signature, and Transfers

Question 41

Essay

Qiara steals a check from Reese, forges his signature, and transfers the check to Salon Beauteous, a beauty and barber salon, for value. Unaware that the signature is not Reese's, Salon Beauteous presents the check to Town & Country Bank, the drawee, which cashes the check. Reese discovers the forgery and insists that his bank recredit his account. Can the bank refuse? If not, from whom can the bank recover?

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Town & Country cannot refuse to recredit...

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