In the case in the text Cincinnati Insurance Company v.Wachovia Bank National Association,what was the court's holding?
A)The bank was not liable because it limited its liability in the contract.
B)The bank was not liable because it acted in good faith.
C)The bank was liable because it did not provide any precautions to prevent fraud.
D)The bank was liable because it could not waive its liability in the contract.

Question

Quizplus · Accepted Answer

The parties' agreement (deposit agreement)described a number of methods by which a customer could safeguard its account from fraud.The bank also provided a service called Positive Pay to help detect fraud,which the customer declined.Since the customer failed to take precautions against fraud,such as Positive Pay,the bank had limited liability under the deposit agreement.

In the Case in the Text Cincinnati Insurance Company V