Case Study: Frank's Negligence in the Face of Forgery
Weldon owned an automobile dealership where his brother Frank was an accountant. When Weldon fell ill for six months, he asked Frank to handle his financial affairs. Frank agreed to do so and refused payment from Weldon for his services. However, Frank grew negligent of Weldon's financial affairs and when one of Weldon's sales clerks forged a company check from Weldon's dealership and the drawee bank paid it out and charged Weldon's account, Frank did not notify the bank for nine months after he received the statement showing the forged check.
What hope has Frank of compelling the bank to reverse the charge?© BrainMass Inc. brainmass.com June 4, 2020, 3:04 am ad1c9bdddf
Unfortunately for him, Frank will most likely be unsuccessful in his crusade to compel the bank to reverse the charge as he wasn't given formal power of attorney over the funds and has now let too much ...
This solution discusses a case study in attorney over funds and forgery.