Exam 22: Checks and Banking in the Digital Age

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Joy steals a check from Kyle, forges his signature, and transfers the check to Loco Loans, Inc., for value. Unaware that the signature is not Kyle's, Loco Loans presents the check to Metro Bank, the drawee, which cashes the check. Kyle discovers the forgery and insists that Metro recredit his account. Can Metro refuse? If not, from whom can the bank recover?

(Essay)

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Question 61

A forged indorsement does not transfer title.

(True/False)

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Question 62

If a customer's debit card is lost or stolen, the customer will not be liable for any unauthorized use of the card.

(True/False)

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Question 63

A bank cannot recover from a party who cashes a check bearing a forged drawer's signature once the bank has accepted and paid the item.

(True/False)

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Question 64

Finance Bank receives a check drawn on the account of Get-Rich Industries, Inc., one of the bank's customers, at 3 p.m. Friday. Hildy, the pre?senter of the check, is not one of the bank's customers. The bank uses de?ferred posting with a 2 p.m. cutoff hour. If it decides to dis?honor the check, it must do so by midnight

(Multiple Choice)

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Question 65

Elmo pays First National Bank $1,000 plus a service fee to draw a check on itself made payable to Go Delivery Service. This is

(Multiple Choice)

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Question 66

A bank may contractually shift to the customer the risk of forged checks created by the use of facsimile or other nonmanual signatures.

(True/False)

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Question 67

Dru signs a check "pay to the order of Eppie" drawn on Dru's account in Bayside Bank. Greta forges Eppie's indorsement. Bayside pays the check. Most likely

(Multiple Choice)

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Question 68

Fact Pattern 22-1 Echo takes her car to Fix-It, Inc., which repairs the car and bills Echo for $500. Echo writes out a check drawn on Capital Bank, but later, believing that Fix-It did not repair the car properly, issues a stop-payment order. -Refer to Fact Pattern 22-1. Capital Bank

(Multiple Choice)

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Question 69

A customer has sixty days from the date of receipt of a statement of an electronic transfer to notify the financial institution of any er?rors.

(True/False)

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Question 70

Under the Check Clearing in the 21st Century Act, a bank has to credit a customer's account as soon as the bank receives the funds.

(True/False)

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Question 71

Banks can replace original with substitute checks.

(True/False)

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Question 72

Showing 61 - 72 of 72

Exam 22: Checks and Banking in the Digital Age

A forged indorsement does not transfer title.

If a customer's debit card is lost or stolen, the customer will not be liable for any unauthorized use of the card.

A bank cannot recover from a party who cashes a check bearing a forged drawer's signature once the bank has accepted and paid the item.

Elmo pays First National Bank $1,000 plus a service fee to draw a check on itself made payable to Go Delivery Service. This is

A bank may contractually shift to the customer the risk of forged checks created by the use of facsimile or other nonmanual signatures.

Dru signs a check "pay to the order of Eppie" drawn on Dru's account in Bayside Bank. Greta forges Eppie's indorsement. Bayside pays the check. Most likely

Fact Pattern 22-1 Echo takes her car to Fix-It, Inc., which repairs the car and bills Echo for $500. Echo writes out a check drawn on Capital Bank, but later, believing that Fix-It did not repair the car properly, issues a stop-payment order. -Refer to Fact Pattern 22-1. Capital Bank

A customer has sixty days from the date of receipt of a statement of an electronic transfer to notify the financial institution of any er?rors.

Under the Check Clearing in the 21st Century Act, a bank has to credit a customer's account as soon as the bank receives the funds.

Banks can replace original with substitute checks.

The Legal Environment

Constitutional Law

Courts and Alternative Dispute Resolution

Torts and Cyber Torts

Intellectual Property and Internet Law

Criminal Law and Cyber Crime

Ethics and Business Decision Making

Nature and Classification

Agreement in Traditional and E-Contracts

Consideration

Capacity and Legality

Voluntary Consent

The Statute of Fraudswriting Requirement

Performance and Discharge

Breach and Remedies

Third Party Rights

The Formation of Sales and Lease Contracts

Title and Risk of Loss

Performance and Breach of Sales Lease Contracts

Warranties and Product Liability

Negotiable Instruments: Transferability Liability

Security Interests in Personal Property

Other Creditors Remedies and Suretyship

Bankruptcy

Mortgages Foreclosures After the Recession

International Law in a Global Economy

Agency Relationships in Business

Employment, Immigration, and Labor Law

Employment Discrimination and Diversity

Sole Proprietorships and Private Franchises

All Forms of Partnership

Limited Liability Companies Special Business Forms

Corporate Formation and Financing

Corporate Directors, Officers, and Shareholders

Corporate Acquisitions, Takeovers, and Termination

Investor Protection, Insider Trading, Corp Governance

Administrative Law

Promoting Competition

Consumer and Environmental Law

Liability of Accountants Other Professionals

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Insurance, Wills, and Trusts

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