Fact Pattern 27-1BEcho 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.
Answer: D
You might also like to view...
Accounts receivable from sales to customers amounted to $40,000 and $32,000 at the beginning and end of theyear, respectively. Income reported on the income statement for the year was $110,000 . Exclusive of the effect ofother adjustments, the net cash flows from operating activities to be reported on the statement of cash flows usingthe indirect method is
a. $118,000 b. $110,000 c. $102,000 d. $150,000
Does the distributable net income of an estate or trust always equal its deduction for distributions to beneficiaries? Are the two amounts ever equal in amount? Answer for estates, simple trusts, and complex trusts.
What will be an ideal response?
Since hand carried wine bottles crossing the border from Hong Kong to China are taxed. Entrepreneurial individuals hire "mules" to transport wine into the mainland
Indicate whether the statement is true or false
Which of the following is not true about a manufacturing business?
A) Change inputs to products which are sold to their customers. B) Their primary goal is to maximize profits. C) Only large business can be considered a manufacturing business. D) All are true.