BLS 112 Chapter Notes - Chapter 28: Digital Image, Punitive Damages, Electronic Communications Privacy Act

• School: Binghamton University
• Department: Business Law and Society
• Course: BLS 112
• Professor: S U N Y Ulster

Document Summary

Chapter 28: banking in the digital age: checks. Cashier"s check: one party serves as both drawer and drawee; indicates specific payee: ex. Interest: teller"s check is similar (used when person withdraws funds from 1 bank to transfer to account at another bank) Creditor-debtor relationship: customer makes cash deposit into a checking account: customer = creditor, bank = debtor. Contractual relationship: when bank-customer relationship is established, certain contractual rights & duties arise. Drawee bank wrongfully fails to honor check liable to customer for damages resulting in refusal to pay: customer does not have to prove bank breach or negligence. Obligation = keep sufficient funds on deposit to cover all checks written. If check is dishonored: customer is liable to payee or holder, bank may rightfully refuse payment (not liable to customer) Stale check: check presented for payment > 6 months from its date: bank is not obligated to pay, but can.