Bank One Wrongfully Dishonored a Check That Its Customer, Brian

question 20

Multiple Choice

Bank One wrongfully dishonored a check that its customer, Brian, had written.  Their contract provided that Bank One would timely honor checks when there were sufficient funds in Brian's account.  Brian had sufficient funds, but a bank employee had made an error in transposing account numbers.  As a result, Brian's mortgage payment was late and he owed a late fee of $35.  Who must pay the $35 late fee?

• A)Brian
• B)The mortgage company
• C)Bank One
• D)Brian and Bank One must split the fee

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the business.

Company

An organization created by several persons for the purpose of running and operating a business activity.

Dividend Payout Ratio

A financial metric that measures the percentage of a company's earnings paid out to shareholders as dividends.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.