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Little Local Bank Wrongfully Fails to Honor a Check Signed

Question 52

Multiple Choice

Little Local Bank wrongfully fails to honor a check signed by its customer Andrea.Little Local Bank is


A) not liable to Andrea for damages resulting from its refusal to pay.
B) only liable to Andrea for damages resulting from its refusal to pay if Andrea takes action against the bank within one business day of the failure to honor the check.
C) only liable to Andrea for one half of the damages resulting from its refusal to pay.
D) liable to Andrea for damages resulting from its refusal to pay.

Correct Answer:

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