Amos was a housepainter and he painted Andy’s house. Andy paid Amos by check. After Amos...

Amos was a housepainter and he painted Andy’s house. Andy paid Amos by check. After Amos left the house, Andy did an inspection of Amos’s work and didn’t like what he saw so he called his bank and ordered them to stop payment on the check which they did. He put nothing in writing. Three weeks later, Amos went to the bank to deposit the check and the bank paid him the money for the amount of the check. When Andy found out he was very angry at the bank. Did the bank do anything wrong in this case? Was there anything Andy should have done to protect himself? Answer in detail, telling me the basis for your answer.

Business Law

Expert Solution

According to the Uniform Commercial Code , Article 4 regarding Bank deposits and its related collections,Stop payment Order can be oral and but if it is Oral then it is valid for only 14 days if not confirmed in Writing within such 14days

A Stop payment is actually valid upto a period of 6 months if made in writing.In case if it is Oral then a Written Communication to the Bank should follow the Oral Instruction within a period of 14 days to make the Stop payment effective

In this case Andy has given oral Instruction to the bank to stop payment on the check he has issued .But Andy failed to Convey /Confirm the same in Writing within 14 Days of giving oral instruction.So the order is ineffective

Amos has deposited the check three weeks later (after 14 days)approximately after 20days when Order turned ineffective and so the Bank has honoured the check without stopping the payment

The Bank has not committed an error.It has acted only according to Uniform Commercial code for Bank deposits and Collections .So Bank cannot be held in charge for the error

Andy should have drafted a written Communication to the bank clearly indicating the details of the check and party on whom it was drawn upon within 14 days(2weeks) to stop the payment on check.

The Answer is based on Article 4 -403 of Uniform Commercial Code containing Customer's right to stop payment and the liability to prove that error has occurred which resulted in losses to the Customer is the responsibility of the Customer

ekkarill92 answered 2 years ago

Amos Jones and Andrew Brown own and operate Amos & Andy, Inc., a Minneapolis-based installer of...

Amos Jones and Andrew Brown own and operate Amos & Andy, Inc., a Minneapolis-based installer of conversion packages for vans manufactured by the major auto companies. Amos & Andy has fixed capital and labor expenses of $1.2 million per year, and variable materials expenses average $2,000 per van conversion. Recent operating experience suggests the following annual demand relation for Amos & Andy products: Q = 1,000 - 0.1P where Q is the number of van conversions (output) and P is...

Andy, who is single, sold his house on Put-in-Bay, which he bought in 2016, and lived...

Andy, who is single, sold his house on Put-in-Bay, which he bought in 2016, and lived there until it sold. Andy paid $50,000 for the house, which he sold for $500,000. What is the taxable gain on the sale of his residence? Select one: a. $200,000 b. $0 c. $500,000 d. $450,000

Amos purchases an auto insurance policy in the amount of $900. Check # 1005 is issued...

Amos purchases an auto insurance policy in the amount of $900. Check # 1005 is issued to Farm Town Insurance. The policy is for 6 months and covers the period from 6/16 – 12/15. In order to provide Amos with accurate accounting information, expense the policy evenly over each of the six months. Amos pays $1,200 (ck # 1013) for a one-year liability insurance policy. The policy coverage takes effect on August 1. What will the adjusted entry for trial...

After Andy completes college, he has two job options. Option 1 will give him $40,000 in...

After Andy completes college, he has two job options. Option 1 will give him $40,000 in the first year and $45,000 in the second year. Option 2 will give him $35,000 in the first year and $50,000 in the second year. Nominal interest rate is 5%. What is the discounted present value of his two-year flow of nominal income for option 1?

Tom has owned his house for 20 years, and he paid $400,000 for it. In 2016...

Tom has owned his house for 20 years, and he paid $400,000 for it. In 2016 he married Gisele and she moved into the house, which remained their main residence until 2019. In late 2019, Tom sold the house (Gisele was not added to the ownership records) and moved to Tampa. The house was sold for $1,100,000. Neither Tom nor Gisele excluded the sale of another house in the last two years. How much of the gain can be excluded for...

John purchased a new house for $500,000. He paid 20 percent down and agreed to pay...

John purchased a new house for $500,000. He paid 20 percent down and agreed to pay the rest over the next 25 years in 25 equal annual payments at 6 percent compound interest. What will be his annual payments?

Mr. Bill S. Preston, Esq., purchased a new house for $120,000. He paid $30,000 upfront and...

Mr. Bill S. Preston, Esq., purchased a new house for $120,000. He paid $30,000 upfront and agreed to pay the rest over the next 10 years in 10 equal annual payments that include principal payments plus 8 percent compound interest on the unpaid balance. What will these equal payments be? a. Mr. Bill S. Preston, Esq., purchased a new house for $120,000 and paid $30,000 upfront. How much does he need to borrow to purchase the house?

financial management principles. . Bill S.Preston purchased a new house for $100,000. He paid $20,000 upfront...

financial management principles. . Bill S.Preston purchased a new house for $100,000. He paid $20,000 upfront on the down payment and agreed to pay the rest over the 25 years in 25 equal annual payments that include principal payments plus 8 percent compound interest on the unpaid balance. What will these equal payments be? What is the present value of an annuity of $90 received at the beginning of each year for the next six years? The first payment will...

Andy, a single man, buys a house in 2000 for $210,000 as his personal residence, living...

Andy, a single man, buys a house in 2000 for $210,000 as his personal residence, living there 100% of the time. He has not made any improvements on the house since then. In 2019, he sells the house for $360,000, and moves to France. How much of a Long-Term Capital Gain did he realize? a. He did not realize any LTCG on this transaction b. He realized $75,000 in LTCG on this transaction c. He realized $150,000 in LTCG on...

Please use IRAC format to answer this question. John and his wife needed their house painted....

Please use IRAC format to answer this question. John and his wife needed their house painted. John wanted to hired Tom to paint the house. Tom estimated it would take 40 hours of labor at $50.00 per hour and 20 gallons of premium paint at $20.00 per gallon. John agreed to pay the labor charge but decided he would buy his own premium paint. John and Tom entered into a valid written contract for the painting of the house: one...

Question