The Cutting Edge Pty Ltd is a company which owns several hairdressing salons. Joanne Snip was the company's bookkeeper. The company's two directors, Madge and Trim are authorized signatories on the bank accounts of the company. Over several months Joanne signed Madge's name, without her knowledge, on company contracts. The contracts include one contract to purchase an expensive computer system. That was installed in Joanne's house. Arthur at the ZNA Bank had suspicions about Joanne's honesty, but because the company's financial records were hopelessly inadequate and because he had been having an affair with Joanne, Arthur did not make any investigations. Madge eventually discovered Joanne's fraudulent actions. The company sues the bank.

Advise ZNA Bank.

1. The company's claim against the ZNA Bank will fail because Joanne has acted unconscionably.
 
2. The company's claim against the ZNA Bank will fail because the presumptions in s 129 Corporations Act 2000(Cth) do not apply.
 
3. Due to Arthur's actions, ZNA Bank has breached the Code of Banking Practice..

All of these answers are correct?

Answer rating: 100% (QA)

None of these answers is entirely correct because they dont fully address the complexities of this s... View the full answer