WHEN MY NEGOTIABLE INSTRUMENTS CLASS is ready to consider Section 4-402 of the Uniform Commercial Code, I always like to start out by asking if anyone would have worded the language differently had they been drafting the section. Usually one of the first responses is to the effect that 4-402 is fine just the way it is because a bank should be made to answer to its customer if it fails to honor a properly payable item drawn upon it. My response to such an answer is twofold. First, I wholeheartedly agree that a bank should be held responsible for such a failure; and with regard to liability, 4-402 merely states a proposition that is at least more than two centuries old.
Leibson, David J.
"Wrongful Dishonor Under the UCC: A Trip Through the Maze of 4-402,"
Akron Law Review: Vol. 8
, Article 3.
Available at: https://ideaexchange.uakron.edu/akronlawreview/vol8/iss2/3