Fact Pattern 27-1A (Questions A17 and A18 Apply)

question 5

Multiple Choice

Fact Pattern 27-1A (Questions A17 and A18 apply)
Mike loses his National Bank access card.He realizes his loss the next day but waits a week to call National.Meanwhile,Opal finds and uses Mike's card to withdraw $3,000 from Mike's account.
-Refer to Fact Pattern 27-1A.When Mike receives his National statement,he demands that the bank investigate the matter and recredit his ac?count.The bank

• A)has no duty to investigate.
• B)must investigate and,if the dispute is not resolved within ten days,recredit Mike's account (at least until the dispute is resolved).
• C)must investigate and immediately recredit Mike's account (at least until the dispute is resolved).
• D)must investigate but need not recredit Mike's account.

Differentiate between equitable remedies and damages.

Explain the concept of specific performance and under what circumstances it is granted.

Understand how contract terms can limit or specify remedies for breach.

Comprehend the legal implications of liquidated damages clauses.

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Definitions:

Risk Environment

An environment that lacks complete information but offers “probabilities” of the likely outcomes for possible action alternatives.

Factual Information

Data or details that are true and can be verified through evidence or observation.

Alternative Courses

Various routes or strategies available for accomplishing an objective or resolving an issue.

Decision-Making Process

A process that begins with identification of a problem and ends with evaluation of results.