Use the Fact Situation in Q5 to Answer the Related

question 33

Multiple Choice

Use the fact situation in Q5 to answer the related question that follows. When Albert advised the bank that the cheque was lost and put the stop payment on it,he then asked the bank to replace it with another certified cheque.The bank responded by telling Albert that it would only replace the cheque if Albert entered into an indemnity agreement with the bank indemnifying the bank in the event the cheque was found and presented for payment.In this case,

• A)the bank can refuse to replace the lost certified cheque because it always has the right to refuse to honour any negotiable instrument.
• B)the bank can refuse to replace the lost certified cheque unless Albert agrees to give it the indemnity agreement.
• C)the bank cannot refuse to replace the lost certified cheque with another one because Albert is the original drawer.
• D)the bank cannot refuse to replace the lost certified cheque because the stop payment is effective to protect the bank if the original certified cheque is presented for payment.
• E)none of the above

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Definitions:

Rape, Abuse and Incest National Network (RAINN)

The largest anti-sexual violence organization in the United States, providing support for survivors through a hotline and other services.

Bystander

An individual who is present at an event or incident but does not take part; often discussed in the context of witnessing bullying or emergency situations.

Preventing Sexual Assault

Measures and efforts aimed at stopping unwanted or forced sexual actions against a person, promoting safety and consent.

Mass Customization

A manufacturing and marketing technique that combines the flexibility of custom-made products with the low unit costs associated with mass production.