Milton Ordered a Fancy Telescope from a Catalogue- Using His

question 20

Multiple Choice

Milton ordered a fancy telescope from a catalogue- using his bank credit card. When it arrived it seemed quite different from that of the catalogue description. Neither the catalogue company nor the manufacturer would take the telescope back. Milton now wants the chartered bank which issued the credit card to reverse the charges. Does Milton have an legal claim against the bank?

• A) No, the bank is a lender to Milton and not an assignee of contracts from sellers.
• B) Yes, but who can afford to sue a chartered bank?
• C) Yes, the federal Bank Act requires chartered banks to be advocates for consumers in respect to credit card purchases.
• D) No, Milton must pursue remedies through the Better Business Bureau
• E) Yes, they are the assignee of the seller.

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Definitions:

Face Value

The nominal value printed on a financial instrument like a bond or a stock certificate, representing its legal value.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounting and investment appraisal.

Fair Value

Fair value refers to the estimated market value of an asset or liability, based on current market conditions and comparable transactions, used in financial reporting.

Capital Lease

A lease considered to have the economic characteristics of asset ownership for accounting purposes.