Question 1

Once a check "bounces," a holder cannot resubmit it for payment.

Accepted Answer

A) True 
 B)False

Question 2

When a bank certifies a check,it immediately charges the drawer's account.

Accepted Answer

A) True 
 B)False

Question 3

A bank is never liable for failing to honor a customer's stop-payment order.

Accepted Answer

A) True 
 B)False

Question 4

Clearwater Bank agrees to honor Dockside Boatbuilders,Inc.'s checks even when its account has insufficient funds.Edna,Dockside's bookkeeper,writes the checks.Later,the bank refuses to pay an item payable to Fleet Supply Company that would create an overdraft.This is

Accepted Answer

A) a wrongful dishonor. 
B) Dockside's liability. 
C) Edna's responsibility. 
D) Fleet's loss. 
A) a wrongful dishonor. 
B) Dockside's liability. 
C) Edna's responsibility. 
D) Fleet's loss.

Question 5

On Monday,Seth deposits into his account at TriCounty Bank a $500 check from Ubie,who also has an account at TriCounty.On that same day,this check is considered

Accepted Answer

A) cashiered. 
B) certified. 
C) paid. 
D) provisionally credited. 
A) cashiered. 
B) certified. 
C) paid. 
D) provisionally credited.

Question 6

Generally,the funds represented by a deposited local check are available for withdrawal within one business day.

Accepted Answer

A) True 
 B)False

Question 7

Fact Pattern 19-3 
Ryley draws a check,on his account in Second National Bank in New York,payable to Tuner TV,Inc. ,in San Francisco.Tuner deposits the check in its ac?count at US Bank.US deposits the check in the Federal Reserve Bank of San Francisco,which transfers it to the Federal Reserve Bank of New York.That Federal Reserve bank sends the check to Second National.
-Refer to Fact Pattern 21-3.If Second National Bank failed to meet its deadline for dishonoring or returning the check,it would be accountable for

Accepted Answer

A) neither the amount of the check nor the cost of its transfer be?tween banks. 
B) the amount of the check and the transfer cost. 
C) the amount of the check but not the transfer cost. 
D) the transfer cost only. 
A) neither the amount of the check nor the cost of its transfer be?tween banks. 
B) the amount of the check and the transfer cost. 
C) the amount of the check but not the transfer cost. 
D) the transfer cost only.

Question 8

Fact Pattern 19-1
Viva takes her car to We-Can-Fix-It,Inc. ,which repairs the car and bills her for $500.She writes a check drawn on Xenon Bank,but later,believing that We-Can-Fix-It did not repair the car properly,issues a stop-payment order.
-Refer to Fact Pattern 19-1.Xenon Bank pays the check.The bank

Accepted Answer

A) can sue Viva for a wrongful stop-payment order. 
B) can sue We-Can-Fix-It for breach of contract. 
C) can sue no one because it paid a check that was not properly payable. 
D) is liable for Viva's loss due to the wrongful payment. 
A) can sue Viva for a wrongful stop-payment order. 
B) can sue We-Can-Fix-It for breach of contract. 
C) can sue no one because it paid a check that was not properly payable. 
D) is liable for Viva's loss due to the wrongful payment.

Question 9

Jon writes a check to Keyes as payment for a DVD player but soon discov?ers the player is broken.Jon goes to the drawee bank and orally author?izes Larry,a bank officer,to stop payment on the check.This order is valid for

Accepted Answer

A) fourteen days. 
B) fourteen months. 
C) six days. 
D) six months. 
A) fourteen days. 
B) fourteen months. 
C) six days. 
D) six months.

Question 10

A person who writes a bad check is subject to a civil suit only.

Accepted Answer

A) True 
 B)False

Question 11

Financial institutions are not required to inform customers of their rights and responsibilities with respect to electronic fund transfer systems.

Accepted Answer

A) True 
 B)False

Question 12

A check orders a bank to pay a fixed amount of money on demand.

Accepted Answer

A) True 
 B)False

Exam 19: Checks and Banking in the Digital Age

Once a check "bounces," a holder cannot resubmit it for payment.

When a bank certifies a check,it immediately charges the drawer's account.

A bank is never liable for failing to honor a customer's stop-payment order.

Clearwater Bank agrees to honor Dockside Boatbuilders,Inc.'s checks even when its account has insufficient funds.Edna,Dockside's bookkeeper,writes the checks.Later,the bank refuses to pay an item payable to Fleet Supply Company that would create an overdraft.This is

On Monday,Seth deposits into his account at TriCounty Bank a $500 check from Ubie,who also has an account at TriCounty.On that same day,this check is considered

Generally,the funds represented by a deposited local check are available for withdrawal within one business day.

Jon writes a check to Keyes as payment for a DVD player but soon discov?ers the player is broken.Jon goes to the drawee bank and orally author?izes Larry,a bank officer,to stop payment on the check.This order is valid for

A person who writes a bad check is subject to a civil suit only.

Financial institutions are not required to inform customers of their rights and responsibilities with respect to electronic fund transfer systems.

A check orders a bank to pay a fixed amount of money on demand.

The Legal and Constitutional Environment of Business

Traditional and Online Dispute Resolution

Ethics and Business Decision Making

Torts and Cyber Torts

Intellectual Property and Internet Law

Criminal Law and Cyber Crimes

Nature and Classification

Agreement and Consideration

Capacity and Legality

Defenses to Contract Enforceability

Third Party Rights and Discharge

Breach and Remedies

E-Contracts and E-Signatures

The Formation of Sales and Lease Contracts

Title and Risk of Loss

Performance Breach of Sales Lease Contracts

Warranties and Product Liability

Negotiability, transferability, and Liability

Security Interest in Personal Property

Creditors Rights and Bankruptcy

Agency Relationships

Employment Law and Immigration

Sole Proprietorships, partnerships, Ltd Liability

Corporate Formation, financing, and Termination

Corporate Directors, officers, and Shareholders

Investor Protection, insider Trading, Corpgov

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Insurance, wills, and Trusts

Liability of Accountants Other Professionals

International Law in a Global Economy

Regulations, Contracts, and Discovery

Legal Issues in Business and Commerce

Legal Issues in Online Relationships and Agreements

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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