Asked by Jarrin Goecke on Apr 24, 2024
Verified
Big Bank is unable to provide notice of dishonor for three days because a fiber optic cable was accidentally cut by a construction worker.Will Big Bank be liable for its failure to act in a timely manner?
Notice of Dishonor
A formal notification given to parties involved that a negotiable instrument, like a check, has been dishonored or refused for payment.
Big Bank
A term often used to refer to the largest banks in a particular region or country, which have a significant impact on the overall banking and financial system.
Fiber Optic Cable
A Fiber Optic Cable is a network cable that contains strands of glass fibers inside an insulated casing, designed for long-distance, high-performance data networking and telecommunications.
- Assess the implications of dishonor and the responsibilities of banks and other parties in negotiable instrument transactions.
Verified Answer
AC
Andrew Cheung8 days ago
Final Answer :
Delay in giving notice of dishonor is excused when the holder has acted carefully and the delay is due to circumstances beyond the holder's control.Hence,Big Bank will be excused for the delay.
Learning Objectives
- Assess the implications of dishonor and the responsibilities of banks and other parties in negotiable instrument transactions.