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

question 7

Multiple Choice

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 pays the check.Capital

• A)can sue Echo for a wrongful stop-payment order.
• B)can sue Fix-It for breach of contract.
• C)can sue no one because it paid a check that was not properly payable.
• D)is liable for Echo's loss due to the wrongful payment.

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Definitions:

Equilibrium Price

The cost point where the amount of a product or service sought by consumers matches the amount available from producers.

Willingness to Pay

The maximum amount a consumer is prepared to spend for a good or service.

Baseball Game Ticket

A document or electronic card that grants the bearer entry to a baseball game.

Consumer Surplus

The distinction between the full amount consumers are willing and able to spend on a good or service and the actual sum paid.