Fact Pattern 28-1B (Questions B8 and B9 Apply)

question 13

Multiple Choice

Fact Pattern 28-1B (Questions B8 and B9 apply)
Dana takes her car to Efficient Auto Repair Service, which repairs the car and bills Dana for $500. She writes out a check drawn on First Choice Bank, but later, believing that Efficient Auto did not repair the car properly, issues a stop-payment order.
-Refer to Fact Pattern 28-1B. If First Choice pays the check, the bank

• A) can sue Dana for a wrongful stop-payment order.
• B) can sue Efficient Auto for breach of contract.
• C) is liable to Efficient Auto for the time and trouble to return the payment.
• D) is liable for Dana's loss due to the wrongful payment.

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation.

Financing Activity

Transactions involving the exchange of financial instruments, typically related to the borrowing, repaying, or raising of capital for a company.

Cash Inflow

The total amount of money being transferred into a business, typically from operational, investment, and financing activities.

Treasury Stock

Shares that were issued and subsequently repurchased by the company, reducing the amount of outstanding stock on the open market.