Book Opener

CHAPTERASSESSMENTIn groups of two or three, contact banks whereseveral different types of automated tellermachines are located. Find out what bankingtransactions can be made at each machine.Compare the results.16. What transactions can be made at all themachines?17. What transactions can be made at some ofthe machines?18. Are there banking transactions that cannotbe made through an ATM?Bank Error?John Kim paid $655 to have his motorcyclerepaired. Two days after the repairs were made,the motorcycle broke down again. Johnimmediately called his bank and put an oralstop payment order on the check. He paid a $20fee for the order. One month later, John foundout that the bank honored the $665 check.Debate19. Who is liable for the loss?20. Can John sue the bank?21. What would you recommend John do now?For the following cases, give your decision andstate a legal principle that applies.22. Nancy Watson receives a check fromHarvey Balsam for $500. For no goodreason, Harvey’s bank refuses to pay it.Can Nancy sue Harvey’s bank? Does shehave a claim against Harvey? Why orwhy not?23. Revisit the previous case. Does Harveyhave a claim against his bank?24. Rita Vicente writes a check for $400payable to Norma Collins. When Normareceives the check, she has it certified bythe bank on which it was drawn. She thengives the certified check to the SawyerAppliance Company in payment for atelevision. Is Rita liable if the check is notpaid? Why or why not?25. Revisit the previous case. Would youranswer be different if Rita, instead ofNorma, had the check certified? Why orwhy not?26. While attending college in Massachusetts,Mark Unger receives a check from hisfather, who lives in Wyoming. When Markdeposits the check in his checking account,the teller informs him that he cannot drawon it for 10 days. Is the teller correct? Whyor why not?27. Colby Sewell wrote a check for $47 toFederal Storage Facilities. Sewell wrote thecheck using a pencil because she was in ahurry and could not find a pen. WhenSewell received her cancelled check andbank statement, she noticed that someonehad altered her check by raising the amountto $550. Even though the check had clearlybeen erased and rewritten, Sewell’s bankcashed it. Is the bank liable for this mistake?Why or why not?28. Paul Bianco’s wallet, which contained hisATM card, was stolen while he was at abaseball game. At the end of the game,Bianco telephoned his bank to inform it ofthe theft of his ATM card. In the meantime,the thief had figured out Paul’s PIN andhad made a withdrawal of $500. Who isliable for the unauthorized use of Bianco’sATM card? Explain your answer.538 Unit 5: Using Your Purchasing Power