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When Kathy Went to Pick Up Her Car at Al's

Question 19

True/False
When Kathy went to pick up her car at Al's Repair Shop,she questioned the mechanic's bill which claimed he did more work on the car than what she had authorized.The mechanic asserted that Kathy had authorized him to do whatever it took to completely fix the problem.Kathy wrote the check to Al's for $538 because she knew the shop would not release the car to her without getting paid for the work.When she left the garage,she drove immediately to her bank and put a stop payment order on the check.By accident,even with the stop payment order in place,the bank paid the check two days later when it was presented for payment.The bank must recredit Kathy's account but can recover from either Kathy or Al's,whichever party was wrong in the contract dispute over the car.

When Kathy went to pick up her car at Al's Repair Shop,she questioned the mechanic's bill which claimed he did more work on the car than what she had authorized.The mechanic asserted that Kathy had authorized him to do whatever it took to completely fix the problem.Kathy wrote the check to Al's for $538 because she knew the shop would not release the car to her without getting paid for the work.When she left the garage,she drove immediately to her bank and put a stop payment order on the check.By accident,even with the stop payment order in place,the bank paid the check two days later when it was presented for payment.The bank must recredit Kathy's account but can recover from either Kathy or Al's,whichever party was wrong in the contract dispute over the car.

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