Fact Pattern 27-2A
Ruth opens an account with State Bank under an agreement in which the bank reserves the right to charge the account for any item returned due to its unau?thorized alteration.
-Refer to Fact Pattern 27-2A. 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 27-2A 
Ruth opens an account with State Bank under an agreement in which the bank reserves the right to charge the account for any item returned due to its unau?thorized alteration.
-Refer to Fact Pattern 27-2A. 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 accordance with the UCC, as it is permissible for a bank to reserve the right to charge an account for any item returned due to unauthorized alteration as long as it is clearly stated in the agreement.