Fact Pattern 25-1B
First Bank's account agreement states that deposited items will be given pro?vi?sional credit only until collection is final, but the bank's practice is to extend immediate credit.
-Refer to Fact Pattern 25-1B. According to the reasoning of the court in Case 25.3, Mid Wisconsin Bank v. Forsgard Trading, Inc., First Bank's prac?tice is consistent with "reasonable commercial standards of fair dealing"
A) if it is consistent with reasonable banking standards.
B) if First Bank's customers have notice, give value, and agree to it in good faith.
C) if First Bank has notice, gives value, and agrees to accept items in good faith.
D) under no circumstances.

Question

Fact Pattern 25-1B 
First Bank's account agreement states that deposited items will be given pro?vi?sional credit only until collection is final, but the bank's practice is to extend immediate credit.
-Refer to Fact Pattern 25-1B. According to the reasoning of the court in Case 25.3, Mid Wisconsin Bank v. Forsgard Trading, Inc., First Bank's prac?tice is consistent with "reasonable commercial standards of fair dealing"
A) if it is consistent with reasonable banking standards.
B) if First Bank's customers have notice, give value, and agree to it in good faith.
C) if First Bank has notice, gives value, and agrees to accept items in good faith.
D) under no circumstances.

Quizplus · Accepted Answer

The court in Mid Wisconsin Bank v. Forsgard Trading, Inc. likely reasoned that a bank's practice is consistent with "reasonable commercial standards of fair dealing" if it aligns with reasonable banking standards.