Question

Jim was called to active duty in the military. Knowing that he would be out of the country for a year or more, he gave his sister Peg authority to pay bills in his name, access his bank accounts, buy and sell stock in his brokerage accounts, and incur expenses to maintain his house and car and boat. Jim received several dividend checks from his stock broker while he was gone. Peg cashed the checks instead of depositing them, and then the cash was stolen out of her wallet. The loss of cash __________.

Answer 1

The loss of cash in this scenario would typically be considered as a result of theft, for which Peg would be held responsible.

Step-by-step explanation:

The loss of cash in this scenario would typically be considered as a result of theft. While Jim gave his sister Peg authority to handle his financial matters, including cashing dividend checks, the responsibility for safeguarding the cash ultimately falls on Peg. Since the cash was stolen after Peg cashed the checks, she would be liable for the loss.