Emily Gave Pierre a Cheque for $5000 as Payment for the Car

question 35

Multiple Choice

Emily gave Pierre a cheque for $5000 as payment for the car he sold her.Pierre owed Henry $5000,and he provided Emily's cheque to Henry to satisfy the debt.Henry couldn't make it to the bank,so he gave it Nigel to deposit for him.How did Henry's bank respond to Nigel's request to deposit the cheque?

• A) The Bills of Exchange Act required the bank to hold the cheque for 10 days.
• B) Provided all endorsements were in order,the bank accepted the cheque for deposit.
• C) The bank refused the cheque because acceptance effectively extended credit.
• D) The bank was required by FINTRAC to verify the validity of the transaction.

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Definitions:

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that provides a uniform and fair regime for contracts for the international sale of goods.

Corporate Stocks

Equity securities that represent ownership shares in a corporation, entitling holders to a share of the corporation's profits through dividends.

Implied Title

A legal concept indicating ownership rights that are not documented but assumed through one's actions or circumstances.

Sale-On-Approval Contract

A contract in which the seller allows the buyer to take possession of the goods before deciding whether to complete the contract by making the purchase.