reply to the students and what the teachers asked me
Here is the main question
For this week’s discussion, post a response to the following case study:
Madeline wrote out a check to Gardner for some remodeling work, including new windows on her house. The day after writing out the check there was a rainstorm. Every new window leaked. Furious, Madeline called her bank and ordered it to stop payment on the check. Two weeks later Madeline wrote a letter to the bank confirming the stop payment order, and mailed it.
It took three days for the bank to get the letter, and during that time Gardner presented the check at the bank, and the bank paid it. Do you believe that Madeline should have any recourse against the bank? Why or why not?
Explain your answer fully and, where appropriate, incorporate material from this week’s readings to help support your answer.
This is what i wrote
My thought is Madeline had plenty of reason to recourse against the bank. She told them directly to stop payment of the check to the window company. As a person who could go through this I see it as wrong but it doesn’t mean that it is. My experiences in the Army I do question it a little because bank transactions do not always occur right away. Sometimes when I put a transaction in it can take over two pay cycles to get it where it should be. After doing some research I was looking at chase bank policy. I quote it says “To stop payment on a check, you must give us an oral or written stop payment order using the phone number or address listed on the back cover, or in person at a branch, or by making an electronic stop payment order through online banking. You must give us the exact account number, and either the exact check number(s) or amount, so we can identify the item. Generally, upon receipt of the stop payment instructions, your request will be processed immediately.” This is why I would also look into the bank policy and the bank she is with because if she signed something saying that a transaction may take over a pay cycle she has know one to blame but herself. This is why it is important to read what you sign before you sign it.
Now based on what i wrote the teacher wrote
How would you further describe the liability on the part of the bank? What would be the facts you would need in order to support this?
What are your thoughts?
What would be the other course materials you would need support this?
Repsond to the teacher based on what i wrote
Here is what a student wrote
Madeline’s oral stop payment notice was valid for 14 days. Had she written and sent her stop payment notice within that 14 days she would have recourse with the bank. However, since her written stop payment was not processed until 17 days later there was a window of opportunity for the check to clear. Fortunately for Gardner, the check was cleared during this window. Madeline’s recourse is to return to Gardner and review the contract between them for the work.
Respond to this student based on the main question