ANSWERS-CH34 - and the consumers right to documentation....

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CHAPTER 34 CHECKS AND ELECTRONIC TRANSFERS ANSWERS TO CHAPTER 34 True-False Multiple Choice 1. F 2. T 3. T 4. T 5. T 6. F 7. F 8. F 9. T 10. T 11. F 12. F 13. T 14. c 15. b 16. d 17. a 18. d 19. d 20. d 21. c 22. b 23. d 24. a 25. d Short Essay 26. General principles of agency law provide that the death or incompetence of the principal terminates the agent’s authority to act for the principal. But the bank has the right to pay the checks of an incompetent until it has notice that the court has determined that the person is incompetent. 27. The EFT requires disclosure of the terms and conditions of electronic fund transfers, including consumer’s liability for unauthorized transfers, nature of the services, pertinent limitations, right to stop payment, liability of the institution to the consumer
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Unformatted text preview: and the consumers right to documentation. 28. No. Tom gave the bank an oral stop order, which was good only for 14 days. Tom did not renew the order or submit a written order. Thus, the bank was free to pay the check. This is true even though Tom presumably had a good defense against Smith. 29. The bank has violated the act, which says that checks drawn by a state must be made available to a depositor on the next day after the date of deposit. This is "under certain conditions," but the text says that no such conditions apply here. Business Law and the Regulatory Environment, 11E 57...
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This note was uploaded on 04/30/2010 for the course BUSLAW 301 taught by Professor Abu during the Spring '09 term at Abu Dhabi University.

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