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Q. Calvin Consumer owed Good Buy Appliances $1,000. He mailed a check to Good Buy Appliances. Calvin comprised a letter with the check stating that the $1,000 was in full payment of his debt to Good Buy Appliances.

Larry, who was employed by Good Buy Appliances, removed the check from the letter and disappeared. Sometime later, Larry cashed the check at Desert Bank. The bank debited Calvin's account. Calvin objected claiming that the bank should not have cashed the check because the check was lost and the check did not belong to Larry.

Is Calvin correct? Explain why or explain why not?

Does Calvin still owe $1,000 to Good Buy? Explain why or explain why not?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M9369095

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