Asked by
kaitlyn warren
on Nov 28, 2024
Verified
Nan writes a check for $1,000 drawn on Omni Bank payable to Posy. Posy presents the check for payment to Omni Bank, which dishonors it. The party most likely liable to Posy is
A) Nan in a civil suit.
B) Nan in a criminal prosecution.
C) Omni Bank in a civil suit.
D) none of the choices.
Dishonors
Refers to the failure to fulfill an obligation or agreement, especially in the context of finance, like a cheque not being paid due to insufficient funds.
Civil Suit
A legal proceeding initiated by an individual or entity (plaintiff) against another (defendant) for the resolution of a non-criminal dispute.
Criminal Prosecution
The legal process in which an individual is charged and tried for a crime.
- Recognize and elucidate the legal consequences of issuing, dishonoring, and paying checks under the Uniform Commercial Code.
- Understand the duties and possible risks for banks in managing and processing checks.
Verified Answer
DW
Learning Objectives
- Recognize and elucidate the legal consequences of issuing, dishonoring, and paying checks under the Uniform Commercial Code.
- Understand the duties and possible risks for banks in managing and processing checks.