Barry Writes a Check to Larry,but Before Barry Delivers It

question 18

Multiple Choice

Barry writes a check to Larry,but before Barry delivers it to Larry,Barry loses it through his own negligence.He then calls his bank and orally places a stop-payment order.Ten days later,the bank pays the check,which was forged.Barry intended to send a follow-up,written stop-payment order,but forgot.Barry learns three weeks later that the check had been paid.In this situation:

• A) the bank must credit Barry's account because it did not follow a valid stop-payment order
• B) Barry suffers the loss because his negligence led to the forgery
• C) Barry suffers the loss because he never sent a written stop-payment order
• D) Barry suffers the loss,but the bank must try to recover from the forger

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Definitions:

No Participation

A situation or condition where individuals or groups are not involved or engaged in a process or activity.

Opinions

Personal beliefs or judgments that are not necessarily based on fact or knowledge.

Delegation

The act of assigning responsibility and authority to someone else to carry out specific activities while maintaining accountability.

Authority

The legitimate power given to an individual or organization to make decisions, enforce obedience, and implement policies.