Fact Pattern 14-1 (Questions 19 and 20 Apply)

question 43

Multiple Choice

Fact Pattern 14-1 (Questions 19 and 20 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 14-1. Capital Bank

• A) is liable to Fix-It for the amount of the check.
• B) must stop payment if Capital has a reasonable time to act.
• C) need not stop payment unless Echo had a valid reason to act.
• D) need not follow Echo's order unless the check was certified.

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