Cengage Advantage Books: Essentials of Business Law 5th Edition by Jeffrey Beatty,Susan Samuelson

Exercise 4

Railroad issued a check to Parris which somehow came to be in Eddy's possession. Eddy indorsed the check "Railroad Eddy" and deposited it in his own account at Bank. Parris sued Bank, alleging that it was liable to him for having paid the check over an unauthorized indorsement. Is Bank liable to Parris On what theory