Question

Mendel had his car repaired by Harry's Garage (HG). He paid by check drawn on ABZ Bank when he collected his car. On the drive home, Mendel realized that the repair had not been made. He immediately called ABZ on his cell phone and told the bank to stop payment on the check. Three days later, HG negotiated the check to Amy, a holder in due course. When Amy went to cash the check, ABZ Bank refused to honor it. What is Mendel's liability on this check?

A. Mendel is not liable to anyone because he stopped the check in time.

B. Mendel is liable to Amy because the stop payment order was made through a phone call.

C. Mendel is not liable to Amy because she took the check from HG.

D. Mendel is liable to Amy because he is the drawer of the check.

Answer

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