Question 1

A customer who fails to examine a bank statement and report a forged signa?ture may be liable for later forgeries by the same wrongdoer.

Accepted Answer

A) True 
 B)False

Question 2

Rikki writes a check "pay to the order of Scholar University" drawn on Rikki's account in Town Bank to pay her tuition.Rikki is

Accepted Answer

A) the certifier. 
B) the drawee. 
C) the drawer. 
D) the payee. 
A) the certifier. 
B) the drawee. 
C) the drawer. 
D) the payee.

Question 3

Generally,a bank has no obligation to pay a customer's overdrafts.

Accepted Answer

A) True 
 B)False

Question 4

Dill writes a check to Elvira on his account at Flagstone Bank.The bank dishonors the check even though Dill has sufficient funds in his ac?count.The bank is

Accepted Answer

A) liable to Dill only. 
B) liable to Dill and Elvira. 
C) liable to Elvira only. 
D) not liable to Dill or Elvira. 
A) liable to Dill only. 
B) liable to Dill and Elvira. 
C) liable to Elvira only. 
D) not liable to Dill or Elvira.

Question 5

Ladd knowingly divulges to Media Exposure magazine information about Niki's e-money payments to Omni Bank.The payments were in trans?mission to Omni Bank when Ladd,without the consent of Niki or the bank,discovered and revealed them.This may be a violation of

Accepted Answer

A) the Electronic Communications Privacy Act. 
B) the Federal Reserve Board's Regulation E. 
C) the Right to Financial Privacy Act. 
D) the Uniform Electronic Transactions Act. 
A) the Electronic Communications Privacy Act. 
B) the Federal Reserve Board's Regulation E. 
C) the Right to Financial Privacy Act. 
D) the Uniform Electronic Transactions Act.

Question 6

Most checks are processed manually.

Accepted Answer

A) True 
 B)False

Question 7

Online Community Bank,an online financial institution,sells nonpublic personal information about Pinto and other customers to E-Marketers,Inc. ,an unaffiliated third party,without permission.The bank may be li?able under

Accepted Answer

A) the Federal Trade Commission Act. 
B) the Financial Services Modernization Act. 
C) the Right to Financial Privacy Act. 
D) the Uniform Electronic Transactions Act. 
A) the Federal Trade Commission Act. 
B) the Financial Services Modernization Act. 
C) the Right to Financial Privacy Act. 
D) the Uniform Electronic Transactions Act.

Question 8

A bank's duty to honor its customers' checks is absolute.

Accepted Answer

A) True 
 B)False

Question 9

Freetown Bank pays a check on which has been forged the signature of the drawer,Greg,who is a Freetown customer.The bank must recredit Greg's account for the entire amount of the check if

Accepted Answer

A) the amount of the check was less than $1,000. 
B) the amount of the check was more than $2,500. 
C) the bank's negligence substantially contributed to the forg?ery. 
D) Greg's negligence substantially contributed to the forg?ery. 
A) the amount of the check was less than $1,000. 
B) the amount of the check was more than $2,500. 
C) the bank's negligence substantially contributed to the forg?ery. 
D) Greg's negligence substantially contributed to the forg?ery.

Question 10

An oral stop payment order is valid for fourteen days.

Accepted Answer

A) True 
 B)False

Question 11

A cashier's check is an instrument in which a bank draws a check on itself.

Accepted Answer

A) True 
 B)False

Question 12

A bank that pays a customer's check with a forged indorsement must recredit the customer's account.

Accepted Answer

A) True 
 B)False

Question 13

A bank has no right to charge a customer's account for the amount of a stale check.

Accepted Answer

A) True 
 B)False

Question 14

Cubby's debit card,issued by Downstate Bank,is stolen and used without Cubby's permission.Cubby tells the bank within a day and a half.Cubby may be re?quired to pay no more than

Accepted Answer

A) $5. 
B) $50. 
C) $500. 
D) $5,000. 
A) $5. 
B) $50. 
C) $500. 
D) $5,000.

Question 15

A customer does not need to examine a bank statement and report his or her forged signa?ture to recover from the bank for the forgery.

Accepted Answer

A) True 
 B)False

Question 16

Leda orders 1,000 imprinted pens from Mark-It Promotions for which she draws a check on N Bank for $100.Leda accepts the first shipment of 100 pens,refuses to accept future shipments,and issues a stop-payment or?der.The bank pays the check.Leda can recover from the bank

Accepted Answer

A) $0. 
B) $10. 
C) $90. 
D) $100. 
A) $0. 
B) $10. 
C) $90. 
D) $100.

Question 17

When a bank pays a check on which the drawer's signature is forged,generally the bank suffers the loss.

Accepted Answer

A) True 
 B)False

Question 18

After Ben's death,his heir Cathy asks his assistant Erin to no?tify Ben's bank,First National Bank.On being notified,the bank can pay or certify checks drawn by Ben,on or before the date of his death,unless Cathy asks to stop all payments,for

Accepted Answer

A) an indefinite period. 
B) sixty days after the date of death. 
C) ten days after the date of death. 
D) thirty days after the date of death. 
A) an indefinite period. 
B) sixty days after the date of death. 
C) ten days after the date of death. 
D) thirty days after the date of death.

Question 19

Deferred posting is the process of dishonoring checks for insufficient funds.

Accepted Answer

A) True 
 B)False

Question 20

A drawer is liable to the holder of a check that is not honored.

Accepted Answer

A) True 
 B)False

Exam 19: Checks and Banking in the Digital Age

A customer who fails to examine a bank statement and report a forged signa?ture may be liable for later forgeries by the same wrongdoer.

Rikki writes a check "pay to the order of Scholar University" drawn on Rikki's account in Town Bank to pay her tuition.Rikki is

Generally,a bank has no obligation to pay a customer's overdrafts.

Dill writes a check to Elvira on his account at Flagstone Bank.The bank dishonors the check even though Dill has sufficient funds in his ac?count.The bank is

Ladd knowingly divulges to Media Exposure magazine information about Niki's e-money payments to Omni Bank.The payments were in trans?mission to Omni Bank when Ladd,without the consent of Niki or the bank,discovered and revealed them.This may be a violation of

Most checks are processed manually.

Online Community Bank,an online financial institution,sells nonpublic personal information about Pinto and other customers to E-Marketers,Inc. ,an unaffiliated third party,without permission.The bank may be li?able under

A bank's duty to honor its customers' checks is absolute.

Freetown Bank pays a check on which has been forged the signature of the drawer,Greg,who is a Freetown customer.The bank must recredit Greg's account for the entire amount of the check if

An oral stop payment order is valid for fourteen days.

A cashier's check is an instrument in which a bank draws a check on itself.

A bank that pays a customer's check with a forged indorsement must recredit the customer's account.

A bank has no right to charge a customer's account for the amount of a stale check.

Cubby's debit card,issued by Downstate Bank,is stolen and used without Cubby's permission.Cubby tells the bank within a day and a half.Cubby may be re?quired to pay no more than

A customer does not need to examine a bank statement and report his or her forged signa?ture to recover from the bank for the forgery.

Leda orders 1,000 imprinted pens from Mark-It Promotions for which she draws a check on N Bank for $100.Leda accepts the first shipment of 100 pens,refuses to accept future shipments,and issues a stop-payment or?der.The bank pays the check.Leda can recover from the bank

When a bank pays a check on which the drawer's signature is forged,generally the bank suffers the loss.

After Ben's death,his heir Cathy asks his assistant Erin to no?tify Ben's bank,First National Bank.On being notified,the bank can pay or certify checks drawn by Ben,on or before the date of his death,unless Cathy asks to stop all payments,for

Deferred posting is the process of dishonoring checks for insufficient funds.

A drawer is liable to the holder of a check that is not honored.

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Ethics and Business Decision Making

Torts and Cyber Torts

Intellectual Property and Internet Law

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Nature and Classification

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International Law in a Global Economy

Regulations, Contracts, and Discovery

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Contracts and Consumer Protection

Liability of Silverado Bank in Prestridge v. Bank of Jena for Forged Checks.

Sovereign Immunity and Bankruptcy Law

Legal Issues in Employment and Liability Cases

Corporate Governance and Securities Law

Real Estate Law: Cases and Controversies

Corporate Ownership and Liability in Chilean Firms

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