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Article 4A Addressed the Frequently Occurring Legal Issues in Funds

Question 34

Multiple Choice

Article 4A addressed the frequently occurring legal issues in funds transfers by stating that ____.


A) a customer will not be liable when the order is from a person unrelated to its business operations
B) in cases where the error would have been discovered had the bank complied with its security procedure, the sending bank is liable for the excess over the amount intended
C) a bank that improperly executes a payment order is not liable for consequential damages even if the parties agree otherwise
D) even if a bank establishes a commercially reasonable procedure, complies with that procedure, and acts in good faith and according to its agreement with the customer, the customer is not bound by an unauthorized payment order
E) in cases where the error cannot have been discovered, even if the bank had complied with its security procedure, the receiving bank is liable for the excess over the amount intended by the sender

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