1. Dana takes her car to Efficient Auto Repair Service, which repairs the car and bills Dana for $500. She writes out a check drawn on First Choice Bank, but later, believing that Efficient Auto did not repair the car properly, issues a stop-payment order.
Refer to Fact Pattern 28-1B. If First Choice pays the check, the bank
a. is liable for Dana’s loss due to the wrongful payment.
b. is liable to Efficient Auto for the time and trouble to return the payment.
c. can sue Dana for a wrongful stop-payment order.
d. can sue Efficient Auto for breach of contract.
2. Refer to Fact Pattern 28-1B. First Choice
a. need not follow Dana’s order because it was issued after the check.
b. need not follow Dana’s order unless the check was certified.
c. is liable to Efficient Auto for the amount of the check.
d. must stop payment if First Choice has a reasonable time to act.