Moe,the owner of NeverSayNo Sales Company,stores blank NeverSayNo checks in an unlocked office drawer.Owen,an employee,forges Moe's signature on one of the blank checks and indorses it to Payday Loans,Inc.With re?spect to Payday,Moe

Question

Quizplus · Accepted Answer

Moe, as the owner of the company, has a duty to reasonably safeguard the blank checks, and storing them in an unlocked office drawer is not a reasonable safeguard. Therefore, if it can be shown that the storage of the checks facilitated the forgery, Moe may be liable to Payday Loans for the amount of the forged check.

Moe,the Owner of NeverSayNo Sales Company,stores Blank NeverSayNo Checks in an Unlocked