Ch25_3e - 25-1Copyright 2007 by Nelson, a division of...

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Unformatted text preview: 25-1Copyright 2007 by Nelson, a division of Thomson Canada Limited.CANADIAN BUSINESS CANADIAN BUSINESS AND THE LAWAND THE LAWThird EditionThird EditionbybyDorothy Duplessis Steven Enman Shannon OByrne Sally GunzPresentation prepared by Presentation prepared by Allan Elliott, Southern Alberta Institute of TechnologyAllan Elliott, Southern Alberta Institute of Technology25-2Copyright 2007 by Nelson, a division of Thomson Canada Limited.CHAPTER TWENTY-FIVECHAPTER TWENTY-FIVEBUSINESS AND BANKINGBUSINESS AND BANKINGOBJECTIVES:The relationship between a business and its bankThe legal framework of negotiable instrumentsThe rights and obligations of those connected with negotiable instrumentsThe legal challenges involved in electronic banking25-3Copyright 2007 by Nelson, a division of Thomson Canada Limited.THE BANKING RELATIONSHIPTHE BANKING RELATIONSHIPREGULATION OF BANKSbanks are under federal jurisdiction and are regulated through the federal Bank ActBank Act the main purpose is to ensure the stability and liquidity of banks and to identify and regulate the types of business they are permitted to conduct25-4Copyright 2007 by Nelson, a division of Thomson Canada Limited.THE BANK-CUSTOMER THE BANK-CUSTOMER AGREEMENTAGREEMENTBANKING AGREEMENTa contract that specifies the rights and obligations of a bank and a customerpurpose of the banking agreementto specify who has the authority to issue instructions to the bank on behalf of the customerto allocate the risk of loss resulting from problems with verifying the customer's authority and carrying out the customers instructions25-5Copyright 2007 by Nelson, a division of Thomson Canada Limited.DUTIES OF THE BANK AND THE DUTIES OF THE BANK AND THE CUSTOMERCUSTOMERCOMMON LAW IMPOSES ADDITIONALDUTIES ON BOTH PARTIES TO THEBANKING CONTRACTthe bank must:honour cheques and repay depositscollect cheques for the customerprovide account information to the customer on a regular basismaintain secrecy of the customers affairs25-6Copyright 2007 by Nelson, a division of Thomson Canada Limited....
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Ch25_3e - 25-1Copyright 2007 by Nelson, a division of...

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