Payment Systems


Course Code:
LAW 241
Law Honors/Pass/R credit/Fail


Negotiable instruments, letters of credit, checks, credit cards, electronic fund transfers, and cash. This course surveys the legal mechanisms by which funds can be transferred, including new mechanisms that have become more important as a result of (a) changes in electronic technology and (b) increased international trade. Designing a system for transferring funds is not easy — as e-firms like PayPal have discovered — and the law has had to deal with the difficulties of each new system in turn. The principal focus will be on articles 3, 4, 4A, and 5 of the Uniform Commercial Code, with occasional reference to other statutes and to international conventions and treaties. Bankruptcy is the first of three courses (the other two are Secured Credit and Payment Systems) dealing with the financing of commercial ventures through means other than the sale of corporate stock. These courses may be taken in any order: neither presupposes any knowledge of the others. Students who cannot take all three should probably prioritize them in the order they are listed-that is, Bankruptcy is the single most important course to take, then Secured Credit, then Payment Systems. Elements Used in Grading: In-School, open book.

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