Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 10

DDH Construction Inc. (DOH) hired Whooping Creek Construction, LLC (WCC) to work on a construction project. The general contractor had hired Gavin Garrett, LLC (Garrett) who a hired DOH. WCC submitted a payment request for its work. The general contractor issued payment to Garrett, who transferred payment to DDH. WCC received a check for $60,000, drawn on DDH's account at Bartow County Bank (Bank). Wednesday, WCC deposited the check in its account at McIntosh Nank. Friday, the Bank ordered a hold on DDh's account for way to the Federal Reserve Bank (Fed) by means of a software program that sent an electronic file with an image of the check stamped "uncollected funds hold." The check was marked received by the Fed on Monday. WCC's account was reduced was not timely, because the check had to be returned to the Fed by midnight Friday, but the notation on the check showed that it was not received by the Fed until Monday. Was the dishonor timely?