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Review Questions §6.10 Review 

Lesson 6:
Checks & EFTs

1. Which of the following is not an element of a cause of action for treble damages under CC §1719?

a. A dishonored check.

b. A written demand for payment, mailed to the drawer, which informs the drawer of the provisions of the statute made by certified mail.

c. Failure of the drawer to pay the full amount of the check within 30 days after the demand.

d. The drawer’s ability to have paid the amount of the check at the time it was written.

2. The drawer is on public assistance and imposing treble damages on his limited income would create an extreme hardship. In such a case, do you have discretion to award an amount less than treble damages?



3. Debbie Drawer gives Paul Payee a check for $50 drawn on insufficient funds. Debbie pays Paul the $50 two weeks after Paul's written demand. What may Paul recover in a small claims action?

a. Nothing, Debbie paid the $50

b. $25

c. $75

4. In the previous question, assume Debbie did not pay Paul the $50 within 30 days of his demand. What may Paul recover in a small claims action?

a. $75

b. $150

c. $200

5. Assume Debbie wrote a bad check for $100 to Paul, but paid $25 within 30 days of Paul's demand. What may Paul recover in a small claims action?

a. $150

b. $300

c. $375

6. A drawer who stopped payment on a check is not liable for a service charge, cost of mailing, or treble damages if he or she stopped payment in order to resolve a good faith dispute with the payee. The payee is entitled to statutory damages only on proving there was no good faith dispute:

a. By a preponderance of the evidence.

b. By clear and convincing evidence.

c. By proof beyond a reasonable doubt.

7. Bank of XYZ fails to honor Customer’s request to stop payment of her preauthorized EFT (regularly monthly payments of $49) to Silver’s Gym. Bank of XYZ refused to stop payment because it knew that Customer had 6 more months to go on her gym membership contract. Is Bank of XYZ in violation of the Act?



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