Commercial Paper Includes Checks That Banks Are Ordered to Pay

question 43

True/False

Commercial paper includes checks that banks are ordered to pay, but not drafts in which a third party is ordered to pay.

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Definitions:

Proximate Cause

A principle in law that denotes the primary cause of an injury, used to establish the direct link between an act and the injury suffered.

Standard of Care

The degree of prudence, attention, and caution expected of a reasonable person in a specific situation, often used as a legal benchmark.

Foreseeable Damage

Refers to harm or loss that a reasonable person could anticipate under certain conditions in legal or contractual contexts.

Duty Not to Injure

The legal obligation to avoid causing harm to others, especially in terms of personal injury or property damage.