Exam 34: Checks and Electronic Transfers

A deceased person's heirs have no power to order a bank to stop payment on checks written by the deceased prior to his death.

Jane wrote a check for $10.She wrote this check in a careless and negligent manner,making alteration easy.Ben altered this check to read $1,000.His alteration was crude and obvious to anyone paying attention.Ben cashed the check at Jane's bank.The bank was negligent in accepting this check,but it deducted $1,000 from Jane's account.Jane sued the bank,and the jury determined that Jane's negligence contributed to 50 percent of the loss and the bank's negligence contributed 50 percent.How much is Jane entitled to recover from her bank?

Abyss handed over a $500 check to Howard Brothers for building him a terrace garden.The next day,Abyss notices that one part of the garden has not been finished.He calls his bank to order it to stop payment on the check.When Howard Brothers presents the check next week,the bank honors it.Which of the following is true in this case?

________ is a process which begins with the buyer giving the seller a check,and the seller using the information on that check to name itself as the payee and forwarding it for collection through an automated clearing house.

What section of the UCC mandates that a bank's signature must appear on a certified check?

A teller's check is a check on which a bank is both the drawer and the drawee.

A check on which one bank is both the drawer and the drawee is called a:

Lakeland Bank certifies a check that subsequently is cashed by Pine Federal Credit Union.Pine Federal Credit Union is not liable for any damages associated with the check.

In the case in the text,Valley Bank of Ronan v.Hughes,the court held that:

A drawer can claim alteration as a reason for not charging a particular check to his account,even if the drawer has contributed to the alteration in some way.

Tom wrote a check to Mary for $10.Tom was careful and not negligent in the way he wrote the check.Nevertheless,Mary cleverly altered the check to read $1,000.Tom's bank cashed this check and deducted that amount from his account.Which of the following is correct?

When both the bank and the customer failed to use ordinary care to prevent alteration or forgery of checks then a comparative negligence is used to determine liability for damages.

The main difference between a certified check and a cashier's check is that the bank is primarily liable on a certified check,but only secondarily liable on a cashier's check.

In the case in the text,Forcht Bank v.Gribbins,what did the court hold?

Checks and other drafts collected through the banking system usually have all of the following parties EXCEPT:

Sal brings a stale check to his bank on June 1,2003.The check is dated September 1,2002.The bank:

Which of the following is true of the drawer-drawee relationship?

Intermediary banks that receive payment orders and then send new payment orders to the next bank in the fund transfer sequence are known as ________.

A check on which one bank is the drawer and another bank is a drawee is a:

In Aliaga Medical Center v.Harris Bank,the case in the text,why was the bank within its rights to pay the check after 90 days,despite the words "void after 90 days" written on the check?