Business Law - Chapter 20: Banking
What is the limit of a customer's liability on their debit card if the loss is reported within 2 days.
$50.00
How many days after a persons death may a bank pay on a check.
10
How many days is a verbal stop payment good for
14
A bank must make funds available for non local checks available within
5 days
A bank is not obligated to pay on a check after
6 months
You must report the loss of your debit card within how long or you might be liable for all use of the card.
60 days
Even if a customer's negligence substantially contributes to a forgery of the drawer's signature on a check, the bank is obliged to re-credit the customer's account for the amount of the check.
F
The death of a customer automatically revokes a bank's authority to accept, pay, or collect an item drawn by the customer on an account with the bank.
F
When a customer makes a deposit into a checking account, the customer becomes a debtor, and the bank a creditor, for the amount deposited.
F
With a joint checking account, the bank can hold any joint-account owner liable for payment of an overdraft even if that owner did not sign the check or benefit from its proceeds.
F
A bank is not obligated to pay an uncertified check presented for payment more than six months from its date.
T
A bank must re-credit a customer's account when the bank pays a check on which the drawer's signature is forged.
T
A check may fall under Uniform Commercial Code Article 3 as a negotiable instrument and be subject to UCC Article 4 in the course of collection.
T
If a bank's payment over a stop-payment order causes subsequent checks written on the drawer's account to be returned for insufficient funds, the bank will be liable for the drawer's resulting costs.
T
If any part of a commercial electronic fund transfer is covered by the Electronic Fund Transfer Act, the entire transaction is excluded from UCC Article 4A.
T
If someone steals a check and forges the indorsement, the bank must credit the account for the loss.
T
To avoid liability for negligence, a customer must examine monthly bank statements and canceled checks promptly and with reasonable care, and report any forged signatures to the bank.
T
When a bank certifies a check, the bank is agreeing in advance to accept the check when it is presented for payment and to make payment with funds reserved for the purpose.
T
When a bank wrongfully dishonors a check, it is liable to the customer for any resulting damages.
T
A bank must honor a Holder in Due Course because a HDC? Record the priority interest To have possession and first claim to the check Set priority in collecting funds Take check free of personal defense
Take check free of personal defense
If a bank repays a customer for a forged indorsement, the bank will be able to recover those funds from whomever they got the check under? Warranty Surety Guarantee Comparative fault
Warranty
Who can be responsible for the amount of a forged check.? Bank Forger Customer Merchant
all
Franco buys a sofa from Grey at a garage sale. Franco writes Grey a check for $50 to pay for the couch. Grey is? the drawee. the payee. none of the choices. the drawer.
the payee.
