Wallace Bought a Widget from Sabrina

question 68

Multiple Choice

Wallace bought a widget from Sabrina.The price was $7500.When he collected the widget from her warehouse,he gave her a cheque that was drawn on his account at the Bank of Windsor.When he got the widget home,however,he discovered that it was defective.He therefore went to his bank and placed a stop payment order on the cheque.Which of the following statements is TRUE?

• A)Wallace's cheque is overdrawn.
• B)When Sabrina presents the cheque for payment,the Bank of Windsor has a complete discretion to choose between honouring it and dishonouring it.
• C)Although he authorized the Bank of Windsor to debit his account when he wrote the cheque,Wallace's stop payment order revoked that authority.
• D)Sabrina can sue both Wallace and the Bank of Windsor if the bank refuses to honour the cheque.
• E)Sabrina is entitled to receive payment on the cheque if a court decides that Wallace was not entitled to discharge the sales contract on the basis that the goods were defective.

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Definitions:

Social Welfare

A system that provides assistance to individuals and families in need, aiming to ensure a minimum standard of living and support for the well-being of the community.

Belief in a Just World

The psychological principle that the world is fundamentally fair, leading people to believe that individuals get what they deserve.

Bystander Effect

A social psychological theory that individuals are less likely to offer help to a victim when other people are present.

Diffusion of Responsibility

Refers to a sociopsychological phenomenon where individuals are less likely to take action or feel a sense of responsibility in the presence of a large group of people.