Potential liability of the customer and customer bank

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Reference no: EM131601543

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 [Restaurant Name]. 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.

Reference no: EM131601543

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