Jonas Smith owns a corner lot that the school children use ...

[mrsjacobs44]

Jonas Smith owns a corner lot that the school children use continually as a short cut on their way to and from Jackson Elementary. Smith grew tired of seeing the diagonal path. He posted signs, which did not deter the children. He erected a gate which they climbed over. He then posted an attack dog at 8:00 a.m. and 3:00 p.m. A child who tried to pet the dog was mauled.
 A) Smith is liable for the child's injuries.
 B) The child was a trespasser and Smith is not liable.
 C) The child was a licensee, but was warned, hence Smith is not liable.
 D) None of the above

Question 2

Sue is an employee at an ABC store. One of Sue's duties is to prepare the bank deposit at the end of the business day. Sue had a very busy day and made a few mistakes. All of the checks, except two, were indorsed with the stamp ABC, Inc that ABC had provided. The bank received the deposit and noticed the lack of indorsement on the two checks. In addition, three of the checks that Sue was to include with the deposit were lost in the parking lot after closing. Phil found the checks and deposited them into his personal account. What is the effect of ABC's indorsement on the lost checks and the lack of indorsement on the two deposited checks?

[peilian]

Answer to Question 1

A

Answer to Question 2

A bank may provide an indorsement for its customer absent any specific prohibition on the instrument. The checks that Sue failed to stamp will be processed without any difficulty. The stamp that Sue used, with a blank indorsement, created a bearer instrument. The stamp should be changed to create a restrictive indorsement to afford greater protection. When a bearer instrument is lost, the finder (Phil), as the possessor of bearer paper, is the holder and is entitled to enforce payment. Some alternate cause of action based on another area of law would be Sue's only hope for recovery of the lost checks.

[mrsjacobs44]

Correct answers!

[peilian]

Great! Please up vote