Questions and Answers
What is one of the risks that a bank faces when dealing with a prospective customer?
The prospective customer may have assumed a false name
What measure is recommended in the text to verify a prospective customer's identity?
Requesting proof of identification bearing a photograph
In the case of Ladbroke v Todd (1914), what was the bank found negligent for?
Failing to make inquiries or ask for references about the prospective customer
In the case of Guardians of St John's Hampstead v Barclays Bank Limited (1923), what mistake did the bank make?
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Based on the cases mentioned in the text, what can be inferred about the duty of banks regarding customer identification?
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What is the purpose of verifying a prospective customer's previous banking relationship, as mentioned in the text?
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Why is it important for proof of identification to bear a photograph?
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In the case of Guardians of St John's Hampstead v Barclays Bank Limited (1923), what did the rogue customer do?
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Based on the information provided in the text, which of the following statements is true regarding a bank's duty of care?
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What is one potential risk that a bank faces if it fails to properly verify a prospective customer's identity?
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