Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 16

Baron wrote a check for $250 payable to Tydings Automotive for car repairs. The check was written early in the day and processed by her bank and charged to Baron's account that same day because Baron and Tydings were both located in the same city. Because Baron did not have enough money in her checking account, the bank charged her a large fee and deducted the fee from her account. Baron notified the bank that she would not pay the fee. She claimed that the bank processed the check in one day and she had intended to deposit money in her account the next day to cover the $250 check to Tydings Automotive. Was the bank justified in charging the fee to Baron's account?