Solved

Which of the Following Is True Regarding Trevor's Statement That

Question 61

Multiple Choice

Which of the following is true regarding Trevor's statement that the bank's only choice was to dishonor the check?


A) Trevor is correct.
B) Trevor is incorrect because under the UCC, the bank could have created an overdraft by paying the check and later charging the account the amount short.
C) Trevor is incorrect because under the UCC, the bank could have created a subsequent draft by paying the check, and the bank would then have needed to seek the customer's permission to charge his account the amount short.
D) Trevor is incorrect because under the UCC, the bank could have created a secondary draft by paying the check and charging the account the amount short.
E) Trevor is incorrect because under the UCC, the bank could have created an excessive draft by paying the check and closing the account at which point, the customer would be free to open a new account.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions