Legal rules for recovery of the amounts, Operation Management

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MJZ Corporation had a checking account with Gulfstream Bank. So that customers who close their accounts would not be embarrassed by having their checks bounce, the bank routinely honors checks for 30 days after a checking account is closed. MJZ was not aware of this policy when it closed its checking account. Within 30 days after the account was closed, two outstanding checks written by MJZ were presented to the bank for payment. The bank paid the checks and requested reimbursement from MJZ. When MJZ refused to repay the bank, it sued MJZ for recovery of the amounts. How should the court rule?


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