https://www.topgradeaccountants.com/wp-content/uploads/2020/07/LOGO-TG1.png 0 0 milton https://www.topgradeaccountants.com/wp-content/uploads/2020/07/LOGO-TG1.png milton2020-11-19 21:40:302020-11-19 21:40:30Tom Cooper is a distributor of tools sold by ACME Tools. Cooper had a line of credit with ACME secur
Tom Cooper is a distributor of tools sold by ACME Tools. Cooper had a line of credit with ACME secured by ACME’s tools in Cooper’s store. In order to expedite payment on Cooper’s line of credit, ACME sent a representative to Cooper’s bank, Meadows State Bank, to authorize Cooper to deposit any checks made payable to ACME into Cooper’s own account. Several years later, some ACME tools were stolen from Cooper’s store. The People’s Indemnity Insurance Company (People’s), which insured Cooper, sent Cooper a check for the loss made payable to “Tom Cooper and ACME Tools” in the amount of $75,000.00. Cooper endorsed the check and deposited it into his account at Meadows. Cooper never paid ACME for the stolen tools. ACME sued Meadows State Bank for accepting the People’s check without the proper endorsement. Is Meadows State Bank liable? Why or why not? Cite any case or legal principle discussed in class to support your answer.