Exam 25: Business and Banking

A written order to a person directing that a specific amount be paid to another individual is commonly described as a negotiable instrument.

Which of the following would strongly suggest to a court that a bank has entered into a fiduciary relationship with its customer?

The holder of a consumer note is not accorded the special status of a holder in due course and is subject to claims arising from the original contract of sale.

Which of the following resulted from the reclassification of non-commercial promissory notes,enacted to ensure payment is subject to claims arising from the original contract of sale?

Describe the various models for electronic cashless transactions.

List the electronic options offered by banks to their customers that were noted in the text.

What essential technical requirement must be present in order for an instrument to become negotiable without investigation as to its validity through reference to circumstances or other documents?

Marina is transferring a cheque to Scott by endorsing his name and her signature to the instrument.What is the legal name for this type of endorsement?

Special endorsements stop the circulation of cheques and remove the risk of anyone else acquiring and cashing them.

The contract that specifies the rights and obligations of a bank and a customer is known as the operation of account agreement.

What is the name given to a document that consists of a written order by one person to a third person to pay money to another person?

Individuals who conduct contractual business with banks need to appreciate the importance of the contract and become familiar with their basic rights and obligations,and they should understand that not only is the contract written largely to protect the bank but also their bargaining power is very limited.

Which of the following may provide an individual without a bank account with the means for conducting online banking?

What is the central purposes of the federal Bank Act?

Why is there so much legal uncertainty surrounding electronic banking?

When a commercial retailer accepts a cheque as payment from one of its customers,the retailer becomes the payee and the customer is the drawer.

Which of the following describes the least restrictive form of endorsement by a holder of a negotiable instrument?

Discuss the purpose of the banking agreement.

The risk associated with a retailer accepting payment for goods in cash is that,while payment is immediate,the money may be counterfeit.

An assignment is a written promise to pay a specified amount to another person.