Question: Clay Haynes was the bookkeeper for Johnstown Manufacturing Inc He

Clay Haynes was the bookkeeper for Johnstown Manufacturing, Inc. He had express check signing authority, and his signature was on the signature card for the account that Johnstown maintained at BancOhio National Bank. Haynes was also the bookkeeper of another corporation, Lynn Polymers, Inc., which was operated by the same individuals that operated Johnstown. Over a period of a year, Haynes engaged in a check cashing scheme from which he pocketed approximately $70,000. Haynes wrote 35 corporate checks to the order of BancOhio National Bank, and the bank, in return, gave the cash to Haynes. Johnstown brought suit against BancOhio to recover $300 for the one check written on the Johnstown account the bank paid to Haynes. Johnstown claimed that the check was written without the express authority of the corporation, and thus it contained an "unauthorized" signature. Was Haynes's signature on the check "unauthorized" as that term is used in the Uniform Commercial Code?

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  • CreatedJuly 16, 2014
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