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Barry Writes a Check to Larry,but Before Barry Delivers It

Question 65

Multiple Choice

Barry writes a check to Larry,but before Barry delivers it to Larry,Barry loses it through his own negligence.He then calls his bank and orally places a stop-payment order.Ten days later,the bank pays the check,which was forged.Barry intended to send a follow-up,written stop-payment order,but forgot.Barry learns three weeks later that the check had been paid.In this situation:


A) the bank must credit Barry's account because it did not follow a valid stop-payment order
B) Barry suffers the loss because his negligence led to the forgery
C) Barry suffers the loss because he never sent a written stop-payment order
D) Barry suffers the loss,but the bank must try to recover from the forger

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