Ervin signs a check "pay to the order of Felicia" drawn on Ervin's account in Garden Fields Bank. Based on a valid legal ground, Ervin later orders the bank not to pay the check, but the bank pays it over Ervin's order. Subsequent checks written on Ervin's account "bounce." Most likely liable for the costs to Ervin is
A) any party to whom a subsequent check was written.
B) Ervin.
C) Felicia.
D) Garden Fields Bank.

Question

Quizplus · Accepted Answer

Garden Fields Bank is most likely liable because it paid the check despite Ervin's valid order to stop payment. The bank's failure to honor the stop payment order makes it responsible for the resulting costs.

Ervin Signs a Check "Pay to the Order of Felicia