Richardson's Commercial Law: a Text-Book for Schools, Colleges And Private ...
Richardson's Commercial Law: a Text-Book for Schools, Colleges And Private ...
W P William Payson Richardson
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The depositor had $4000 to his credit. The cashier, in violation of the instructions of the board of directors of the bank, certified the check instead of pa5dng it. Is the bank liable?*** 5. In Case No. 4, suppose the depositor drew the check for a greater amount than he had in bank, and it was certified contrary to the instructions of the directors. What would be the bank's liability?**** **•» •*^ 6. A corporation was formed for the sole purpose of manufacturing and equipping street cars with... fenders. The business being successful, the stockholders decided to increase the plant and manufacture street cars as well as car fenders. The directors bought a large quantity of limiber and other material to be used in constructing the cars. What are the rights of the credi- tors in case the company refuses to pay for the lumber and materials when they had knowledge that the company was exceeding its authorized powers?*** 7. In Case No. 6, would your answer be the same if the creditors had no knowledge that the corporation was exceeding the provisions of its charter?*** 8.
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