Question: Middle Georgia Livestock Sales bought cattle at an auction paying

Middle Georgia Livestock Sales bought cattle at an auction, paying by check. A couple of days later, Middle Georgia discovered that it had purchased stolen cattle and put through a stop- payment order on the check. Commercial Bank, however, cashed the check without knowledge of the stop- payment order. When the drawee bank refused payment, Commercial Bank sued the maker of the check. In this state, a transaction involving stolen goods is illegal and void. Can Commercial Bank collect from the maker?

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  • CreatedSeptember 15, 2015
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