Fact Pattern 23-1 (Questions 15 and 16 apply)
Echo takes her car to Fix-It, Inc., which repairs the car and bills Echo for $500. Echo writes out a check drawn on Capital Bank, but later, believing that Fix-It did not repair the car properly, issues a stop-payment order.

-Refer to Fact Pattern 23-1.Capital Bank
A)is liable to Fix-It for the amount of the check.
B)must stop payment if Capital has a reasonable time to act.
C)need not stop payment unless Echo had a valid reason to act.
D)need not follow Echo's order unless the check was certified.

Question

Fact Pattern 23-1 (Questions 15 and 16 apply)
Echo takes her car to Fix-It, Inc., which repairs the car and bills Echo for $500. Echo writes out a check drawn on Capital Bank, but later, believing that Fix-It did not repair the car properly, issues a stop-payment order.

-Refer to Fact Pattern 23-1.Capital Bank
A)is liable to Fix-It for the amount of the check.
B)must stop payment if Capital has a reasonable time to act.
C)need not stop payment unless Echo had a valid reason to act.
D)need not follow Echo's order unless the check was certified.

Quizplus · Accepted Answer

Capital Bank must stop payment if Echo's stop-payment order is received in time and the bank has a reasonable opportunity to act on it.

Fact Pattern 23-1 (Questions 15 and 16 Apply)