Under the UCC, When Does a Person Have Notice of a Fact

question 70

Multiple Choice

Under the UCC, when does a person have notice of a fact?

• A) When the person has actual notice of the fact.
• B) When the facts and circumstances known to the person at the time in question give the person reason to know that the facts exist.
• C) When the person receives notice or notification of the facts.
• D) When the person has actual notice of the fact, when the facts and circumstances known to the person at the time in question give the person reason to know that the facts exist, and also when the person receives notice or notification of the facts.
• E) When the person has actual knowledge of the fact, or the facts and circumstances known to the person at the time in question give the person reason to know that the fact exists, but not that the person receives notice or notification of the fact.

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Definitions:

Bank Service Charge

Fees charged by a bank for the maintenance of an account and for providing banking services.

Book Balance

The balance of an account according to the accounting records, not necessarily reflecting available funds or amounts for spending.

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those shown on a bank statement to identify any discrepancies.

Depositor's Records

Documentation maintained by an individual or entity that tracks deposits made in a bank account.