Newspapers / The Tryon Daily Bulletin … / March 28, 1980, edition 1 / Page 10
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Tryon Dally Bulletin, Fri.. Mar. Law For Laypersons (Written by Charles C. Lewis, Assistant Professor of Law, Campbel! College School of Law for the North Carolina Academy of Trial Lawyers and distributed as a public service) When an employee of one company draws a check on his company’s account to the order FOR SALE: 7-8 boxwoods. Call 859-9439 days, or 863-4861 nights, adv. 28, 31,c. EXPERIENCED COOK Want ed at Red Fox Country Club. Please call 894-8253. adv. 28, 31,c. WANTED TO CARE FOR CHILDREN in my home, 1st or 2nd shift, Monday through Friday. Phone 894-3712. adv. 28, 31, apr. 2, pd. OPALINE TRACING PAPER — rolls, pads and sheets. ARLEDGE PRINTERS PhoneSSH fixW Tr\on. N.C. FOR SALE: *70 Ford Van and ’72 Olds. $600. each. Phone 859-9683. adv. 28, 31,c. FOR SALE BY OWNER: Small, furnished, 1 BR cottage in prime location on Melrose Ave. Ext. Easy walk to churches, library, etc. Good garden spot beside babbling brook. Nice trees and shrubs. Has electric heat plus fireplace. Coo) in summer. $22,500. Call 859-9570 days or 859-9223 nights, adv. 28, 31, apr. 4, 7, ll,c. FOR SALE: 1955 Ford Pickup. Excellent condition. New 292 V-8 Motor, mag wheels, white letter tires. Beautiful cherry-red finish. Call after 5:30 p.m., 894-3495. adv. a . 31. 1, 2, 3, 4, pd. FOR RENT: Unfurnished 2 BR Apt., $110 mo. Includes water, sewage and garbage. Call 859-9596 before 3 p.m. adv. 28, 31, 1.0. HAVE TRUCK AND TROY-BILT p. 1 .. travel. Custom garden tilling. Call Phil at 859-5630. adv. a . 31,1, pd. 28, 1980 of a second company, forges that second company's signature on the back of the check and then cashes the check, taking the money for his own use, the Uniform Commercial Code pro vides that his company must bare the loss. The bank which paid over the forged endorsement does not bare the loss because the Uniform Commercial Code con siders that the forged signature made by the company’s em ployee is effective against that company. Suppose an employee of X Corporation is not high enough in the company management to be able to draw a check for his own benefit. Instead, the employee cleverly fakes an invoice from Y Corporation showing that there has been a delivery of goods when, in fact, there has been no such delivery. The employee delivers the fake invoice to the treasurer of X Corporation who then draws a check in the amount set out on the fake invoice. If the check were delivered to Y Corporation, it would of course know that the check was not payable and return it. Suppose, however, that the same employee who gave the fake invoice also stole this check before it was mailed to Y Corporation and then forged the endorsement of Y Corporation, cashing the check and using the money for his own benefit. Y Corporation would not miss the check because the money was not owed to it, and X Corporation’s treasurer would probably never check to be sure the goods were actually delivered. At some point, however, the employee’s misdeed will be exposed, and the question of who sould bare the loss must be raised. X Corporation, whose employee faked the invoice, might try to argue that its bank .paid over a forged endorsement of Y Corporation when it charged its account and since payment was not proper, its bank should recredit its account as it would have to do when it paid over any forged endorsement. Ordinarily, such an argument might work, but in this particular situation when an employee of X Corporation has supplied his corporation with the name of Y Corporation, intending that a check be drawn in which Y Corporation would have no interest, the Uniform Commer cial Code specifically provides that the forged endorsement of the Y Corporation made by the employee will be effective will not have to recredit the account for the check which it Pa All businesses, large or small, should set up procedures which will protect the company not only against employees like treasur ers from writing checks for their own benefit but also procedures which will protect a treasurer from writing a check to pay for goods which will never be delivered. If such procedures are not set up and a company’s bank pays over a forged endorsement made as a result, the company , , must bare the loss for its Guild sews each Monday from Negligence in allowing its 9:30 to 3:00 p.m. Cali 859-5460. ^WWWWMMMIlW^WWWBIWW^^ INCOMPARABLE! This small brick home is easy to manage and is within walking distance of town. It has a living- dining area with fireplace, kitchen, screened-in porch, bedroom and bath on the main level. Downstairs there Is a family room, bedroom, bath, kitchen and utility room. There Is a nice yard with various shrubs and the mountains are seen In the distance. Let us show you this before It gets away. John Knoblock, Realtor 704-859 6206 * WMMMMM * N " M " MMM ' MnN *'*l*A*«MMlW*NMUMMWMMM employees to embezzle money in such a fashion. “This article is written as a matter of general interest only. It is not to be construed as legal advice, and you should not rely on the statements made in the article to govern your actions in any specific case. If you have a particular question or problem, you should contact an attorney. THE PEPPERMINT GIFT SHOPPE GUILD The Peppermint Gift Shoppe Guild will begin their Spring meetings on Monday, March 31st at the home of Mrs. Ken Smith on Carolina Dr. The
The Tryon Daily Bulletin (Tryon, N.C.)
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March 28, 1980, edition 1
10
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