[Three Checks] on January 1,Jerome Writes Two Checks and Dates

question 28

Multiple Choice

[Three Checks] On January 1,Jerome writes two checks and dates them January 15,as he is waiting for a large deposit to clear on January 5.The first check is to Rhea,and the second check is to Treya.Treya deposits her check on January 2,but she is notified that the check is dishonored for insufficient funds.On February 1,Jerome writes a check for $50 to Kaleb.Kaleb adds a "0" to the check amount and scratches out the word "Fifty" and writes "Five Hundred" and deposits the check.Jerome dies on April 1.Rhea deposits her check on April 15,but the bank dishonors Rhea's check.
-Who is responsible for the check to Treya?

• A)The bank,but only if Jerome had notified the bank that he had postdated the check.
• B)The bank is always responsible for failing to hold funds prior to the date of the check.
• C)Jerome,because someone who writes a check without sufficient funds is always liable,regardless of whether he notified the bank that the check was postdated.
• D)Treya,because the check clearly identified the date of January 15,and she bears the risk of depositing the check early.
• E)Jerome,because he should have told Treya not to deposit the check until after January 15.

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Definitions:

Norms

Established standards of behavior or beliefs that are accepted and expected within a society or group.

Group Cohesiveness

The extent to which members of a group support and validate one another while working to achieve a common goal.

Expected Behaviours

The actions or reactions anticipated from a person in a given situation based on social norms or organizational policies.

Status Symbols

Status symbols are items or indicators that signify the social position or status of an individual within a community, often associated with wealth, occupation, or prestige.