Question 1

On March 26,Janet wrote a $3,200 check to Legend Travel Agency.If the check is presented for payment the following January,should the bank pay the check? Explain the bank's obligations under these circumstances.

Accepted Answer

The answer of On March 26,Janet wrote a $3,200 check...

Question 2

On February 23,Ginny wrote a check for $436 to Framer Home Improvement as a deposit on some windows.When will the check be overdue? What is the effect of the check's being overdue? What is the effect if the check is stamped "Insufficient Funds" by Ginny's bank?

Accepted Answer

The answer of On February 23,Ginny wrote a check for...

Question 3

Al has authorized the payment of his cell phone bill through electronic fund transfer each month.In July,the bank's system malfunctions,preventing the usual transfer.Discuss the effect of the malfunction on Al's obligations.

Accepted Answer

The answer of Al has authorized the payment of his...

Question 4

Hammer bought a tool set from Weekend Projects,Inc.and signed a consumer credit contract promising to pay for the tool set in 12 monthly installments.Weekend promptly negotiated the instrument to its affiliate Easy Finance Co.in exchange for a discounted payment.Easy Finance gave value for the instrument,in good faith,and without knowledge of any defects or claims against the instrument.The tool set was defective and therefore Hammer stopped making the monthly payments.Easy Finance sues Hammer for the balance due on the instrument.Can Hammer raise the defense of breach of the implied warranty of merchantability against Easy Finance? Discuss.

Accepted Answer

The answer of Hammer bought a tool set from Weekend...

Question 5

Russ wrote a check to buy some motors from Sam's Small Engine Shop.Before the check was cashed,Russ stopped payment on it because he found out the motors were not powerful enough for his needs and he was going to return them.The bank negligently paid the check over the stop payment order.Discuss what makes a stop payment order valid,including the length of time for which a stop payment order is effective,and whether a bank has liability for paying a check over a stop payment order.

Accepted Answer

The answer of Russ wrote a check to buy some...

Quiz 13: Negotiable Instruments and Banks

On March 26,Janet wrote a $3,200 check to Legend Travel Agency.If the check is presented for payment the following January,should the bank pay the check? Explain the bank's obligations under these circumstances.

On February 23,Ginny wrote a check for $436 to Framer Home Improvement as a deposit on some windows.When will the check be overdue? What is the effect of the check's being overdue? What is the effect if the check is stamped "Insufficient Funds" by Ginny's bank?

Al has authorized the payment of his cell phone bill through electronic fund transfer each month.In July,the bank's system malfunctions,preventing the usual transfer.Discuss the effect of the malfunction on Al's obligations.