Lulu owns a luxury watch and jewellery store in Brighthelm. She receives an e-mail order for two

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Lulu owns a luxury watch and jewellery store in Brighthelm. She receives an e-mail order for two topof- the-range watches, costing £2,000 each, from Terry who claims to be from Anex Design, an interior decorating company which requires the watches quickly as retirement presents for two of their longserving employees. Lulu has the watches in stock and she agrees to sell them on receipt of a company cheque. The cheque arrives the next day and Lulu sends the watches to Anex Design.
The following day Heather comes into the store and wishes to buy a diamond ring, priced £1000. Heather writes out a cheque, but Lulu explains that the store does not take personal cheques. Heather replies ‘You must know my face—I'm the famous actress Heather Miles. I live here in Brighthelm’ and shows Lulu her equity card which contains a photo and the name ‘Heather Miles’. Lulu looks up the phone book and sees that a Heather Miles lives in Brighthelm. She accepts Heather’s cheque and lets her take the ring away.
The cheques from Anex Design and Heather Miles are dishonoured. Lulu has now discovered that Anex Design does not exist and the watches have been sold on to Chris and Barbara, and that the diamond ring has been sold on to Kia. Advise Lulu.

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