Fact Pattern 19-2
Ruth opens a checking account with State Bank.The bank agrees to accept responsibility for the difference between the original amount of any check that Ruth draws on the account and the amount actually paid on the item due to its unauthorized but undetected alteration.
-Refer to Fact Pattern 19-2.The agreement between Ruth and State Bank
A)cannot change the effect of the UCC.
B)is in accord with the UCC.
C)violates federal banking regulations.
D)violates the UCC.

Question

Fact Pattern 19-2 
Ruth opens a checking account with State Bank.The bank agrees to accept responsibility for the difference between the original amount of any check that Ruth draws on the account and the amount actually paid on the item due to its unauthorized but undetected alteration.
-Refer to Fact Pattern 19-2.The agreement between Ruth and State Bank
A)cannot change the effect of the UCC.
B)is in accord with the UCC.
C)violates federal banking regulations.
D)violates the UCC.

Quizplus · Accepted Answer

The agreement between Ruth and State Bank is in accord with the UCC. The UCC provides guidelines for the duties and liabilities of banks and accountholders in the context of checks, including the responsibility for detecting unauthorized alterations. Ruth's agreement with State Bank establishes an additional level of protection for her as an accountholder, and it does not conflict with any of the UCC's provisions.