Asked by Shaniqua Esdaille on May 22, 2024
Verified
Which of the following is true regarding what is considered a commercially reasonable manner by which notice of dishonor may be given to a secondarily liable party?
A) The only commercially reasonable manner for notice of dishonor recognized by the UCC is certified mail.
B) The UCC recognizes two manners of delivery for notice of dishonor that are considered commercially reasonable: written and electronic.
C) The only commercially reasonable manner recognized by the UCC for notice of dishonor is written mail.
D) Due to advances in technology, the only commercially reasonable manner recognized by the UCC for notice of dishonor is electronic communication.
E) The UCC recognizes that oral, written, and electronic communications are all commercially reasonable ways in which to provide notice of dishonor.
Commercially Reasonable
Actions that a prudent individual or entity would take in a commercial context, considering the circumstances reasonably expected in such a situation.
Notice Of Dishonor
A formal notification that a negotiable instrument, such as a check or draft, has been presented for payment and has been dishonored due to insufficient funds or other reasons.
UCC
The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, including sales, negotiable instruments, and secured transactions.
- Comprehend what constitutes a commercially reasonable manner for giving notice of dishonor.
Verified Answer
EJ
Erica JohnsonMay 25, 2024
Final Answer :
E
Explanation :
The UCC is flexible in recognizing various forms of communication as commercially reasonable for notice of dishonor, including oral, written, and electronic methods, to accommodate different business practices and technological advancements.
Learning Objectives
- Comprehend what constitutes a commercially reasonable manner for giving notice of dishonor.