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Is the bank that cashed the checks for wilson liable to dave

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Reference no: EM131624432

A bank cashed the checks of its customer, Dave's Diner, Inc., that were presented to the bank by Dave's bookkeeper, Mary Wilson. The checks were indorsed in blank with a rubber stamp that said "Dave's Diner, Inc." Wilson had been stealing the checks and cashing them instead of depositing them in Dave's Diner account.

Questions: Is the bank that cashed the checks for Wilson liable to Dave?

What could Dave's Diner have done to prevent this theft?

Reference no: EM131624432

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