Ervin signs a check "pay to the order of Felicia" drawn on Ervin's account in Garden Fields Bank. Ervin later orders the bank not to pay the check, but the bank pays it over Ervin's order. Subsequent checks written on Ervin's account "bounce." Most likely liable for the costs to Ervin is
A) Garden Fields Bank.
B) any party to whom a subsequent check was written.
C) Felicia.
D) Ervin.

Question

Ervin signs a check "pay to the order of Felicia" drawn on Ervin's account in Garden Fields Bank. Ervin later orders the bank not to pay the check, but the bank pays it over Ervin's order. Subsequent checks written on Ervin's account "bounce." Most likely liable for the costs to Ervin is​
A) ​Garden Fields Bank.
B) ​any party to whom a subsequent check was written.
C) ​Felicia.
D) ​Ervin.

Quizplus · Accepted Answer

Garden Fields Bank is most likely liable because they paid the check despite Ervin's order to stop payment, which led to subsequent checks bouncing.

Ervin Signs a Check "Pay to the Order of Felicia