Asked by
Oscar Eduardo Nieto Espitia
on Dec 19, 2024
Verified
Ruth takes her car to Service Center, which repairs the car and bills her for $500. She writes out a check drawn on Tempo Bank, but later, believing that Service Center did not fix the car properly, issues a stop-payment order. If Tempo pays the check, the bank
A) can sue Ruth for a wrongful stop-payment order.
B) can sue Service Center for breach of contract.
C) is liable to Service Center for the time and trouble to return the payment.
D) is liable for Ruth's loss due to the wrongful payment.
Stop-payment Order
A request made to a bank instructing it not to process a payment on a check or transaction that has been issued but not yet cashed.
Wrongful Payment
A payment made in error, either due to fraud, administrative error, or mistaken identity, which may require recovery.
Liable
Liable means being legally responsible or obligated to compensate for harm, damages, or loss resulting from one's actions or negligence.
- Acquire knowledge about the process and requirements for initiating stop-payment orders for checks.
- Gain an understanding of the roles and potential hazards banks face when dealing with the handling and processing of checks.
Verified Answer
LE
Learning Objectives
- Acquire knowledge about the process and requirements for initiating stop-payment orders for checks.
- Gain an understanding of the roles and potential hazards banks face when dealing with the handling and processing of checks.