Question 1

A customer has two days to discover and notify the bank of any error on the monthly statement involving an electronic transfer of funds.

Accepted Answer

A) True 
 B)False

Question 2

Joni writes Keizer an uncertified check for $500 drawn on Joni's account at Labor Employees Credit Union. Seven months later, Keizer presents the check for payment. The credit union pays the check in good faith without consulting Joni. The credit union​

Accepted Answer

A)  ​can charge Joni's account for $500. 
B)  ​can charge Joni's account for $250 only. 
C)  ​is liable for breach of contract. 
D)  ​cannot charge Joni's account for any amount. 
A)  ​can charge Joni's account for $500. 
B)  ​can charge Joni's account for $250 only. 
C)  ​is liable for breach of contract. 
D)  ​cannot charge Joni's account for any amount.

Question 3

A bank is not obligated to pay an uncertified check presented less than six months from its date.

Accepted Answer

A) True 
 B)False

Question 4

Boris can write checks on his account at City Bank. Demi steals the checks, forges Boris's signature, and cashes the checks at City. The bank is excused from any liability if, after receipt of the first forged check, Boris fails to report the forgeries within​

Accepted Answer

A)  ​one month. 
B)  ​one day. 
C)  ​one year. 
D)  ​six months. 
A)  ​one month. 
B)  ​one day. 
C)  ​one year. 
D)  ​six months.

Question 5

On Friday morning, Geoff deposits into his account at Heartland Bank a $500 check from Imelda, who also has an account at Heartland. On that same day, this check is considered​

Accepted Answer

A)  ​cashiered. 
B)  ​certified. 
C)  ​paid. 
D)  a provisional credit.​ 
A)  ​cashiered. 
B)  ​certified. 
C)  ​paid. 
D)  a provisional credit.​

Question 6

Misty's debit card, issued by National United Bank, is stolen and used without her permission. She tells the bank within thirty days. She may be required to pay no more than​

Accepted Answer

A)  ​$5. 
B)  ​$50. 
C)  ​$500. 
D)  ​$5,000. 
A)  ​$5. 
B)  ​$50. 
C)  ​$500. 
D)  ​$5,000.

Question 7

Franco buys a sound system from Grey at Grey's garage sale. Franco writes Grey a check for $250 to pay for the system. Grey is​

Accepted Answer

A)  ​the drawer. 
B)  ​none of the choices. 
C)  ​the payee. 
D)  ​the drawee. 
A)  ​the drawer. 
B)  ​none of the choices. 
C)  ​the payee. 
D)  ​the drawee.

Question 8

A bank's duty to honor its customer's check is subject to the stipulation that the account has sufficient funds to pay the check.

Accepted Answer

A) True 
 B)False

Question 9

Gillis writes a check to Harley as payment for a game player but soon discovers it is broken. He goes to the drawee bank and orally authorizes Ilene, a bank officer, to stop payment on the check. This order is valid for​

Accepted Answer

A)  ​six days. 
B)  fourteen days.​ 
C)  ​six months. 
D)  ​any stated period of time. 
A)  ​six days. 
B)  fourteen days.​ 
C)  ​six months. 
D)  ​any stated period of time.

Question 10

Marta has a checking account with Neighbors Bank. Marta signs a check "payable to Olive" drawn on Marta's account. Neighbors Bank is​

Accepted Answer

A)  ​the payee. 
B)  none of the choices.​ 
C)  ​the drawer. 
D)  ​the drawee. 
A)  ​the payee. 
B)  none of the choices.​ 
C)  ​the drawer. 
D)  ​the drawee.

Question 11

Drew signs a check "pay to the order of Eastern State University" drawn on Drew's account in Fidelity Bank to pay her tuition. Drew is​

Accepted Answer

A)  ​the payee. 
B)  ​the drawee. 
C)  ​none of the choices. 
D)  ​the drawer. 
A)  ​the payee. 
B)  ​the drawee. 
C)  ​none of the choices. 
D)  ​the drawer.

Question 12

Ken presents an instrument that states "pay to the order of Laura" to MegaBank for payment. This instrument is the most common type of negotiable instrument, which is​

Accepted Answer

A)  ​a note. 
B)  ​a payment via a mobile device. 
C)  ​a check. 
D)  ​a certificate of deposit. 
A)  ​a note. 
B)  ​a payment via a mobile device. 
C)  ​a check. 
D)  ​a certificate of deposit.

Exam 28: Banking in the Digital Age

A customer has two days to discover and notify the bank of any error on the monthly statement involving an electronic transfer of funds.

Joni writes Keizer an uncertified check for $500 drawn on Joni's account at Labor Employees Credit Union. Seven months later, Keizer presents the check for payment. The credit union pays the check in good faith without consulting Joni. The credit union​

A bank is not obligated to pay an uncertified check presented less than six months from its date.

Boris can write checks on his account at City Bank. Demi steals the checks, forges Boris's signature, and cashes the checks at City. The bank is excused from any liability if, after receipt of the first forged check, Boris fails to report the forgeries within​

On Friday morning, Geoff deposits into his account at Heartland Bank a $500 check from Imelda, who also has an account at Heartland. On that same day, this check is considered​

Misty's debit card, issued by National United Bank, is stolen and used without her permission. She tells the bank within thirty days. She may be required to pay no more than​

Franco buys a sound system from Grey at Grey's garage sale. Franco writes Grey a check for $250 to pay for the system. Grey is​

A bank's duty to honor its customer's check is subject to the stipulation that the account has sufficient funds to pay the check.

Gillis writes a check to Harley as payment for a game player but soon discovers it is broken. He goes to the drawee bank and orally authorizes Ilene, a bank officer, to stop payment on the check. This order is valid for​

Marta has a checking account with Neighbors Bank. Marta signs a check "payable to Olive" drawn on Marta's account. Neighbors Bank is​

Drew signs a check "pay to the order of Eastern State University" drawn on Drew's account in Fidelity Bank to pay her tuition. Drew is​

Ken presents an instrument that states "pay to the order of Laura" to MegaBank for payment. This instrument is the most common type of negotiable instrument, which is​

Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Business and the Constitution

Business Ethics

Tort Law

Strict Liability and Product Liability

Intellectual Property Rights

Internet Law, Social Media, and Privacy

Criminal Law and Cyber Crime

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration

Capacity and Legality

Mistakes, Fraud, and Voluntary Consent

The Writing Requirement in Our Digital World

Third Party Rights

Performance and Discharge

Breach of Contract and Remedies

The Formation of Sales and Lease Contracts

Title, Risk, and Insurable Interest

Performance and Breach of Sales and Lease Contracts

Warranties

International and Space Law

Negotiable Instruments

Transferability and Holder in Due Course

Liability, Defenses, and Discharge

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Agency Formation and Duties

Agency Liability and Termination

Employment, Immigration, and Labor Law

Employment Discrimination

Small Businesses and Franchises

All Forms of Partnerships

Limited Liability Companies and Special Business Forms

Corporate Formation and Financing

Corporate Directors, Officers, and Shareholders

Mergers and Takeovers

Investor Protection, Insider Trading, and Corporate Governance

Administrative Agencies

Consumer Law

Environmental Protection

Antitrust Law

Professional Liability and Accountability

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Insurance

Wills and Trusts

The Legal Environment of Business

Torts and Crimes

Contracts and E-Contracts

Domestic and International Sales and Lease Contracts

Negotiable Instruments

Creditors Rights and Bankruptcy

Agency and Employment

Business Organizations

Government Regulation

Property and Its Protection

Filters

Joni writes Keizer an uncertified check for $500 drawn on Joni's account at Labor Employees Credit Union. Seven months later, Keizer presents the check for payment. The credit union pays the check in good faith without consulting Joni. The credit union

Boris can write checks on his account at City Bank. Demi steals the checks, forges Boris's signature, and cashes the checks at City. The bank is excused from any liability if, after receipt of the first forged check, Boris fails to report the forgeries within

On Friday morning, Geoff deposits into his account at Heartland Bank a $500 check from Imelda, who also has an account at Heartland. On that same day, this check is considered

Misty's debit card, issued by National United Bank, is stolen and used without her permission. She tells the bank within thirty days. She may be required to pay no more than

Franco buys a sound system from Grey at Grey's garage sale. Franco writes Grey a check for $250 to pay for the system. Grey is

Gillis writes a check to Harley as payment for a game player but soon discovers it is broken. He goes to the drawee bank and orally authorizes Ilene, a bank officer, to stop payment on the check. This order is valid for

Marta has a checking account with Neighbors Bank. Marta signs a check "payable to Olive" drawn on Marta's account. Neighbors Bank is

Drew signs a check "pay to the order of Eastern State University" drawn on Drew's account in Fidelity Bank to pay her tuition. Drew is

Ken presents an instrument that states "pay to the order of Laura" to MegaBank for payment. This instrument is the most common type of negotiable instrument, which is