BUSINESSLAW CHAPTER 31 - Business law

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MARCH 2009 BUSINESS LAW CHAPTER 31 DEBRA BARONE ANSWERS TO QUESTIONS AND CASE PROBLEMS 1. No, she is not entitled to collect. She knew there were insufficient funds in he account, but she wrote the check anyay. The bank can not be held liable. If she had made a stop payment order before the check was cashed, the bank would be held liable. 2. Since Helen notified the bank within two days of having her card stolen, she had to pay $50. If she waited longer she would have been liable for $500. 3. No, she can not recover. Since Shirley gave the stop payment over the phone (orally), it is only good for 14 days. The check was presented on the sixteenth day. 4. The court found the bank liable because the bank deposited a check made out to the Estate of Arthur J. Odgers into Breslow’s own account. The bank teller should have questioned this. 5. No, she can not. Shipper’s wife had to notify the bank within one year (12 months) from the time of the forgery in order for the bank to be held liable. She waited until 13 months later. 6. The bank must bear the loss on as Gloria reported the forgery within the one year time limitation. 7. Yes. A stop payment order in some cases makes the depositor liable to the holder of the check. A depositor is liable for stopping payment to any holder
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BUSINESSLAW CHAPTER 31 - Business law

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