Question

Lou's bank refuses to honor a check that would create an overdraft in his account. Lou

A.

cannot sue the bank because he and his bank are not in privity of contract.

B.

cannot sue his bank if the check was more than six months old.

C.

can sue his bank because it has a duty to pay all overdrafts.

D. can sue his bank only if the bank agreed to honor his overdrafts.

Jan orders 100 rulers from Depot Office Supplies for which she pays the sales price of $100 in advance. Jan accepts a shipment of ten rulers, then decides that she does not want more. She issues a stop payment order, but the bank permits Depot Office Supplies to cash the check. Jan is entitled to recover from the bank

	A.	$100.
	B.	$90.
	C.	$10.
	D.	none of the above.

Answer 1

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