Which of the following defeats a bank's liability for failing to observe a stop-payment order?
A)That the order was oral rather than written.
B)That the bank was not given 14 days to obey the order.
C)That the bank paid a person against whom the customer did not have a defense.
D)That the bank has the customer sign a disclaimer holding the bank harmless for its failure to exercise ordinary care and good faith regarding its handling of stop-payment orders.

Question

Quizplus · Accepted Answer

While a stop-payment order is in effect,the drawee bank is liable to the drawer of a check that it pays for any loss that the drawer suffers by reason of such payment.To show a loss,the drawer must establish that the drawee bank paid a person against whom the drawer had a valid defense to payment.

Which of the Following Defeats a Bank's Liability for Failing