Question
Please help.
The restaurant provides catering services to local businesses. Corporate clients paid by check or electronic transfers. A new customer paid for a catering order with a check for $575, made payable to the restaurant. Woods took the check to the bank the next afternoon and was informed that the customer’s bank issued a stop payment on the check.
Evaluate the restaurant’s options related to the stop payment on the customer’s check and the potential liability of the customer and customer’s bank.
The restaurant provides catering services to local businesses. Corporate clients paid by check or electronic transfers. A new customer paid for a catering order with a check for $575, made payable to the restaurant. Woods took the check to the bank the next afternoon and was informed that the customer’s bank issued a stop payment on the check.
Evaluate the restaurant’s options related to the stop payment on the customer’s check and the potential liability of the customer and customer’s bank.