Question

The duty of care exercised by a collecting bank in handling an item transferred to it for collection does not include:

A) Verifying the item's authenticity.
B) Safeguarding the item from theft.
C) Ensuring the item's compliance with environmental regulations.
D) Promptly notifying the customer of collection proceeds.

Answer 1

A collecting bank's duty of care does not include ensuring the item's compliance with environmental regulations.

Step-by-step explanation:

The subject of this question falls under the category of Business.

When it comes to the duty of care exercised by a collecting bank in handling an item transferred to it for collection, the responsibilities do not include ensuring the item's compliance with environmental regulations.

The bank's duty of care primarily involves verifying the item's authenticity, safeguarding the item from theft, and promptly notifying the customer of collection proceeds.