Question 1

Jill's account with Small Bank is improperly charged with a $3,000 substitute check that was actually Bob's check drawn on Small Bank.Discuss Jill's legal rights and what she must do to rectify this situation.

Accepted Answer

The answer of Jill's account with Small Bank is improperly...

Question 2

Al is considering making a purchase from an online merchant.Discuss the relative advantages Al has if he uses a credit card or a debit card for the purchase.

Accepted Answer

The answer of Al is considering making a purchase from...

Question 3

Small Bank mistakenly dishonors a $5,000 check written by its customer,Wanda,to Hyram Real Estate as a down payment for a new home.As a result of the dishonor,Wanda's closing is delayed by thirty days.She incurs $500 extra rental expenses,$1,000 in attorney's fees and home mortgage interest rates increase by one half percent before her closing.Hyram deposited the $5,000 check in its account and suffered $300 in NSF charges when credit for the deposit was withdrawn.Discuss the liability of Small Bank to Wanda and Hyram.

Accepted Answer

The answer of Small Bank mistakenly dishonors a $5,000 check...

Question 4

Ashton Bank knows that its customer,Juan,has died.One day after Juan's death,Ashton Bank was presented a check for clearing of $3,000.The check was written by Juan a week prior to his death to Bailey Enterprises.Discuss the legal rights of Bailey Enterprises.

Accepted Answer

The answer of Ashton Bank knows that its customer,Juan,has died.One...

Question 5

Chambers wrote out a check to Smith for $300.Smith attempted to cash the check at Chambers's bank,but the bank refused to honor it even though there was enough money in Chambers's account.Can Smith sue the bank for refusing to honor the check? Explain.

Accepted Answer

The answer of Chambers wrote out a check to Smith...

Question 6

Josie writes a check on January 15 to Rusty Enterprises,but later realizes that the merchandise she purchased was of poor quality.She gives a stop payment order to the bank on January 20.Her bank has the check in its possession and is accepting it as she completes her stop payment order.Her bank pays the check,and Josie demands that her account be recredited.Discuss the legal aspects of this situation.

Accepted Answer

The answer of Josie writes a check on January 15...

Question 7

While cleaning out her desk,Chen found a certified check she had received eight months earlier and had forgotten to cash.When she brought the check to the bank on which it was drawn,the bank refused to cash it.Discuss the legal rights of the parties in this case.

Accepted Answer

The answer of While cleaning out her desk,Chen found a...

Question 8

Dreamwork Bank uses the substitute check procedure to rapidly obtain payment of items deposited by its customers.An employee of the bank fraudulently alters some substitute checks so that they are for greater amounts than the original paper check and embezzles the difference.Discuss the bank's warranties in this situation.

Accepted Answer

The answer of Dreamwork Bank uses the substitute check procedure...

Question 9

Linda's checkbook is stolen on January 1 and three checks are forged on her account at Strata Bank.This first appears on a bank statement delivered to her on February 15,but Linda does not examine the statement until March 5.She reports the forgery to the bank on March 6.The other two forged checks do not appear on other bank statements until April 15,and Linda reports them to the bank on April 20.Discuss the case.

Accepted Answer

The answer of Linda's checkbook is stolen on January 1...

Question 10

Oliver wrote a check to Greg Motors for $4,000 drawn on Uphill Bank in payment for a secondhand car.Greg Motors deposited the check in its account at Seventh Day Bank,which sends the check to Uphill Bank for collection.Oliver's car broke down before he reached home that evening,and he contacted his bank to stop payment on the check.Discuss what Uphill bank must do with the check to ensure a stop payment.

Accepted Answer

The answer of Oliver wrote a check to Greg Motors...

Quiz 18: Bank-Depositor Relationships and Cyber-Banking

Jill's account with Small Bank is improperly charged with a $3,000 substitute check that was actually Bob's check drawn on Small Bank.Discuss Jill's legal rights and what she must do to rectify this situation.

Al is considering making a purchase from an online merchant.Discuss the relative advantages Al has if he uses a credit card or a debit card for the purchase.

Ashton Bank knows that its customer,Juan,has died.One day after Juan's death,Ashton Bank was presented a check for clearing of $3,000.The check was written by Juan a week prior to his death to Bailey Enterprises.Discuss the legal rights of Bailey Enterprises.

Chambers wrote out a check to Smith for $300.Smith attempted to cash the check at Chambers's bank,but the bank refused to honor it even though there was enough money in Chambers's account.Can Smith sue the bank for refusing to honor the check? Explain.

While cleaning out her desk,Chen found a certified check she had received eight months earlier and had forgotten to cash.When she brought the check to the bank on which it was drawn,the bank refused to cash it.Discuss the legal rights of the parties in this case.