K & K MFG., INC. v. UNION BANK

No. 2 CA-CIV 3735.

129 Ariz. 7 (1981)

628 P.2d 44

K & K MANUFACTURING, INC., a corporation, and Bill J. Knight, Plaintiffs/Appellants, v. UNION BANK, a corporation, Defendant/Appellee.

Court of Appeals of Arizona, Division 2.

Rehearing Denied March 24, 1981.

Review Denied April 14, 1981.


Attorney(s) appearing for the Case

Lesher, Kimble & Rucker, P.C. by Robert O. Lesher, Tucson, for plaintiffs/appellants.

Moore, Jennings, Kepner, Scheffing & Hart, by Robert O. Dyer, Phoenix, for defendant/appellee.


OPINION

HATHAWAY, Chief Judge.

In this case we must apply articles three and four of the Uniform Commercial Code to determine who should bear the risk of loss when a dishonest employee forges her employer's name as drawer on a number of checks on his business and personal checking accounts, then appropriates the proceeds for her personal use.

Appellant Bill J. Knight is the president and majority stockholder of both K & K Manufacturing, Inc. and...

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