Unauthorized Fund Transfers. FACTS: Lawrence Kruser and his wife maintained a joint checking account with the Bank of America. The bank issued to each of them a “Versatel” card and separate personal identification numbers so that they could access funds in their account from automated teller machines (ATMs). The Krusers believed that Mr. Kruser’s card had been destroyed in September 1986. The December 1986 account statement mailed to the Krusers by the bank, however, reflected a $20 withdrawal of funds by someone using Mr.Kruser’s card at an ATM. Mrs. Kruser underwent surgery in December 1986 and was in the hospital for eleven days. She spent the following months recuperating from the surgery. She therefore failed to examine the December bank statement promptly and did not discover the unauthorized December withdrawal until August or September of 1987, at which time she reported it to the bank. In September 1987, the Krusers received bank statements for July and August of 1987, which reflected forty-seven unauthorized withdrawals, totaling $9,020, made from an ATM by someone using Mr. Kruser’s card. They notified the bank of these withdrawals within a few days of receiving the statements. ISSUE: Is the bank liable to the Krusers for the unauthorized withdrawals? Discuss. RULE/RESOLUTION: [Kruser v. Bank of America NT & SA, 230 Cal.App.3d 741, 281 Cal.Rptr. 463 (1991)] How did the court answer the questions? What did the court decide? EXPLANATION/APPLICATION-Do you agree with the court? Why or why not? Can you change any facts to give a different result?