Question
Sal writes a check to Bob for $100, and then dies the next day. Two days after Sal dies, Bob presents the check to Sal's
Sal writes a check to Bob for $100, and then dies the next day. Two days after Sal dies, Bob presents the check to Sal's bank, which honors it, and later learns that Sal is deceased. Sal's estate complains that the bank shouldn't have honored the check because Sal was deceased. Which of the following statements is true?
A. The bank is liable for the check because it should have verified that Sal was alive.
B. The bank isn't liable for the check because at the time it didn't know Sal was deceased.
C. The bank isn't liable for the check because checks become void immediately on the death of the maker.
D. The bank isn't liable for the check because banks must honor checks presented within 10 days of the maker's death.
Step by Step Solution
3.38 Rating (151 Votes )
There are 3 Steps involved in it
Step: 1
The answer is option D which is The bank isnt liable for th...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Introduction To Business Law
Authors: Jeff Rey F. Beatty, Susan S. Samuelson
3rd Edition
978-0324826999, 0324826990
Students also viewed these Accounting questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App