LFIS

A holder of a bill of exchange

• can sue in his own name

• can sue any one or all parties liable on the instrument

• is a payee or indorsee of the note

• must be from a certain group

A bill of exchange involves the following:

• the drawer who makes an order

• the person to whom it is addressed, the drawee

• the payee who receives the sum specified

• none of the above

The most common form of bank accounts is the

• savings account

• current account

• term account

• trust account

The crossing on a cheque has the effect

• of restricting negotiation of the cheque

• of requiring the cheque to be paid to another bank and not over the counter

• that the named payee is entitled to collect the cheque

• of allowing the cheque to be cashed over the counter

The Receiving Financial Institution (called the collecting bank in the cheque system) receives payment for the account of its customer and is acting as the customer's ................ for the purpose of receiving the payment (Joachimson v Swiss Bank Corpn)

Which of the following is/are the contractual relationship/s in a credit card use:

• contract between issuer and cardholder

• contract for sale of goods/services between merchant and cardholder

• contract between merchant and merchant acquirer

• contract between cardholder and merchant acquirer

Which common law case supports the default rule that when a paying financial institution makes a payment, it pays away it own money and not that of the customer.

• London Joint Stock Bank Ltd v Macmillan and Arthur

• Tai Hing Cotton Mill Ltd v Liu Chong Hing Bank Ltd

• Foley v Hill

• Greenwood v Martins Bank Ltd

According to Clayton's Rule of ......................................., in the absence of a contrary intention, payments are presumed to be appropriated to debts in the order in which the debts are incurred.

• last in first out

• last in last out

• first in first out

• first in last out