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When a Bank Receives a Properly Drawn and Payable Check

Question 5

Multiple Choice

When a bank receives a properly drawn and payable check and there are sufficient funds to cover the check, if the bank wrongfully dishonors the check, the bank _____.


A) is liable to the drawer even if the depositor had ordered to stop payment
B) may be liable to the drawer only if the depositor's credit rating had been injured
C) is not liable for any damages to the drawer unless the bank dishonored the check intentionally, knowing it to be properly drawn and payable
D) is liable for actual and consequential damages suffered by the drawer

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