(BQ) Part 2 book "Business law today" has contents: Checks and banking in the digital age, secured transactions, mortgages and foreclosures after the recession, mortgages and foreclosures after the recession, liability of accountants and other professionals, consumer and environmental law,.and other contents. | 19 Chapter Checks and Banking in the Digital Age Learning Objectives • Checks • The Bank-Customer Relationship • Bank’s Duty to Honor Checks • Bank’s Duty to Accept Deposits • Electronic Fund Transfers • E-Money and Online Banking The five learning objectives below are designed to help improve your understanding of the chapter. After reading this chapter, you should be able to answer the following questions: 1 What type of check does a bank agree in advance to accept when the check is presented for payment? 2 When may a bank properly dishonor a customer’s check without being liable to the customer? 3 What duties does the Uniform Commercial Code impose on a bank’s customers with regard to forged and altered checks? What are the consequences if a customer is negligent in performing those duties? 4 What is electronic check presentment, and how does it differ from the traditional check-clearing process? 5 What are the four most common types of electronic fund transfers? (Paul Paladin/) Chapter Outline “Money is just what we use to keep tally.” —Henry Ford, 1863–1947 (American automobile manufacturer) C 494 hecks are the most common type of negotiable instruments regulated by the Uniform Commercial Code (UCC). Checks are convenient to use because they serve as a substitute for cash. Thus, as Henry Ford said in the chapter-opening quotation, checks help us to “keep tally.” To be sure, most students today tend to use debit cards rather than checks for many retail transactions. Not only do debit cards now account for more retail payments than checks, but payments are increasingly being made via smartphones, iPads, and other mobile devices, as we discuss later in this chapter. Nonetheless, commercial checks remain an integral part of the . economic system. Articles 3 and 4 of the UCC govern issues relating to checks. Article 4 of the UCC governs bank deposits and collections as well as bank-customer relationships. Article 4
