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O'Shea Issues a Check Drawn on Prime Bank to Quality

Question 72

Multiple Choice

O'Shea issues a check drawn on Prime Bank to Quality Equipment Supply to pay for a backhoe. Later,O'Shea discovers a defect in the backhoe and orders the bank to stop payment on the check. O'Shea does not renew the order,and the bank clears the check eight months later. The bank


A) must recredit O'Shea's account.
B) must obtain funds from Quality to cover the amount of the check.
C) must substitute acceptable goods.
D) need not recredit O'Shea's account.

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