Shakira issues a check drawn on Thrifty Bank to Ranch & Farm Supply to pay for a rototiller. Later, Shakira discovers a defect in the device and orders Thrifty to stop payment on the check. Shakira does not renew the order, and the bank clears the check eight months later. The bank
A) must recredit Shakira's account.
B) must obtain funds from Ranch & Farm to cover the check.
C) must substitute acceptable goods.
D) need not recredit Shakira's account.

Question

Quizplus · Accepted Answer

Once a check has been cleared, the bank is no longer responsible for stopping payment or recrediting the account. Shakira's failure to renew the stop payment order is also her responsibility, and the bank is not obligated to take any further action. Therefore, the bank does not need to recredit Shakira's account.

Shakira Issues a Check Drawn on Thrifty Bank to Ranch