Fact Pattern 27-1B

question 31

Multiple Choice

Fact Pattern 27-1B
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 27-1B.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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Definitions:

Barriers To Entry

Obstacles that make it difficult for new competitors to enter a market, such as high start-up costs, complex regulations, or strong brand loyalty among consumers.

Economies Of Scale

Reductions in per unit costs achieved through increased levels of production.

Competitively Organized

Referring to markets or industries where multiple firms exist in competition with one another, ensuring no single entity controls the market prices or supply.

Economic Profits

Profits that exceed the opportunity costs of all inputs, considering both explicit and implicit costs.