Asked by
Angela Jackson
on Nov 28, 2024
Verified
Dill issues a check drawn on Eagle Bank to Farm Supply Store to pay for a rototiller. Later, Dill discovers a defect in the device and orders the bank to stop payment on the check. Dill does not renew the order, and the bank clears the check eight months later. The bank
A) must recredit Dill's account.
B) must obtain funds from Farm Supply to cover the check.
C) must locate and substitute an acceptable rototiller.
D) none of the choices.
Stop Payment
A request made to a financial institution to cancel the processing of a check or payment transaction before it has been completed.
Defect
An imperfection or shortcoming in a product or system that impairs its usability, safety, or functionality.
- Comprehend the procedures and circumstances necessary for generating stop-payment requests on checks.
- Acquire knowledge on the obligations and likely liabilities of banks concerning check handling and processing.
Verified Answer
JL
Learning Objectives
- Comprehend the procedures and circumstances necessary for generating stop-payment requests on checks.
- Acquire knowledge on the obligations and likely liabilities of banks concerning check handling and processing.