For Improper Execution or Failure to Execute Payment Orders, Banks

question 13

Multiple Choice

For improper execution or failure to execute payment orders, banks can be liable to:

• A) the originators for their expenses in the transaction along with incidental expenses and interest losses.
• B) the beneficiaries for their incidental expenses.
• C) the originators for consequential damages.
• D) both the originators and beneficiaries for consequential damages, even though the written agreement of the receiving bank does not provide for it.

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Definitions:

Rich Medium

Communication channels with the capacity to convey messages in a more understanding and effective manner through immediate feedback, multiple cues, and personalization.

Grapevine Distortion

The alteration or misinterpretation of messages as they pass through informal communication channels within an organization, often leading to misinformation.

Media Richness Hierarchy

A concept categorizing communication media according to their capacity to effectively convey information, ranging from rich media like face-to-face interactions to lean media like text messages.

Media Richness

refers to the ability of a communication medium to effectively convey information and promote understanding.