Fact Pattern 27-1B
Echo takes her car to Fix-It,Inc. ,which repairs the car and bills Echo for $500.Echo writes out a check drawn on Capital Bank,but later,believing that Fix-It did not repair the car properly,issues a stop-payment order.
-Refer to Fact Pattern 27-1B.If Capital Bank pays the check,Capital
A)can sue Echo for a wrongful stop-payment order.
B)can sue Fix-It for breach of contract.
C)can sue no one because it paid a check that was not properly payable.
D)is liable for Echo's loss due to the wrongful payment.

Question

Fact Pattern 27-1B 
Echo takes her car to Fix-It,Inc. ,which repairs the car and bills Echo for $500.Echo writes out a check drawn on Capital Bank,but later,believing that Fix-It did not repair the car properly,issues a stop-payment order.
-Refer to Fact Pattern 27-1B.If Capital Bank pays the check,Capital
A)can sue Echo for a wrongful stop-payment order.
B)can sue Fix-It for breach of contract.
C)can sue no one because it paid a check that was not properly payable.
D)is liable for Echo's loss due to the wrongful payment.

Quizplus · Accepted Answer

Capital Bank is liable for Echo's loss because it paid a check that was subject to a stop-payment order, making the payment wrongful.