Fact Pattern 22-1

question 27

Multiple Choice

Fact Pattern 22-1
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 22-1. 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:

Sugar Act

A law passed by the British Parliament in 1764, lowering the duty on imported molasses, aiming to strengthen the collection of trade duties under the Navigation Acts.

Raise Revenue

The process by which governments generate funds, typically through taxes, fees, or levies, to finance public services and projects.

Regulate Trade

The activity of controlling or governing trade between states or countries through laws and regulations to ensure fairness, efficiency, and safety.

Sugar Acts

Legislation passed by the British Parliament in the mid-18th century aimed at regulating the trade of sugar and molasses in the colonies.