Asked by
Lulu's Dance
on Nov 28, 2024
Verified
Kobe signs a check "pay to the order of Liu" drawn on Kobe's account at Main Street Bank. He later orders the bank not to pay the check, but the bank pays it over his order. Subsequent checks written on the account "bounce." Most likely liable for the costs to Kobe is
A) any party to whom a subsequent check was written.
B) Kobe.
C) Liu.
D) Main Street Bank.
Bounce
The return of a paper check or electronic funds transfer due to insufficient funds in the account it was drawn on.
Liable
Being legally responsible or answerable for an act or a circumstance, often involving damage or injury.
- Identify and clarify the legal effects related to the issuing, dishonoring, and redemption of checks under the guidelines of the Uniform Commercial Code.
- Comprehend the responsibilities and potential liabilities of banks in the handling and processing of checks.
Verified Answer
SR
Learning Objectives
- Identify and clarify the legal effects related to the issuing, dishonoring, and redemption of checks under the guidelines of the Uniform Commercial Code.
- Comprehend the responsibilities and potential liabilities of banks in the handling and processing of checks.