Asked by Jason Carbonetti on May 16, 2024
Verified
Did the bank properly dishonor the check to Rhea?
A) Yes, because it was Rhea's responsibility to notify the bank that Jerome had died.
B) No, the bank is responsible for the check because Jerome died.
C) Yes, because Rhea's check was presented for payment after Jerome died, thus the check is nonpayable.
D) No, the funds must be paid to Rhea by the bank, regardless of whether or not Jerome died.
E) The bank bears no responsibility when the customer dies.
Dishonor
The refusal or inability to fulfil an obligation, especially in relation to financial instruments like checks or promissory notes.
Nonpayable
Relates to a financial situation where a sum of money is not eligible to be paid out, often due to specific terms or conditions not being met.
Customer Death
A situation in which a business must address the death of a client, often involving the handling of accounts, services, or ongoing transactions.
- Comprehend the legal principles behind the handling of postdated and modified checks and their resulting liabilities.
Verified Answer
DE
Destiny EsperMay 19, 2024
Final Answer :
C
Explanation :
The bank properly dishonored the check because it was presented for payment after the account holder, Jerome, had died, making the check nonpayable under those circumstances.
Learning Objectives
- Comprehend the legal principles behind the handling of postdated and modified checks and their resulting liabilities.