5. Stolen Purses. Sandra and Mary were having lunch at their favorite restaurant. Unfortunately, a thief stole their purses containing their ATM cards. Mary notified her bank the next day of the theft of the ATM card. Unfortunately, the card had already been used to fraudulently obtain over $1,000. Sandra thought back to her business law class and did not call her bank, however, because she believed that she would not be liable for any charges on the ATM card because of the rules involving forgeries. Nevertheless, a week or so later when Sandra was in the bank, she casually mentioned to the teller that she needed a new card because hers had been lost. She was shocked when a bank representative attempted to hold her responsible for hundreds of dollars of goods purchased with the ATM card. Sandra told the bank representative that she refused to cover the amounts, that she was moving her account, and that she wanted all preauthorized payments and EFTs stopped immediately. Which of the following is true regarding the bank's obligation to stop EFT transfers?

A. The bank must stop any EFT payments if the request is made within 48 hours of the EFT authorization.

B. The bank must stop any EFT payments if the request is made within five days of the EFT authorization.

C. The bank is not required to stop payments on EFTsbecause such transfers occur instantaneously.

D. The bank must end any EFT payments on the same day requested if the request is made by 2 p.m.

E. The bank must immediately end any EFTs on the same day requested if the request is made during regular business hours.

12. Hot Dress. Doreen writes a check for a dress to Hot Dresses, Inc., a small specialty shop owned primarily by Betty. Betty was getting ready to go on an extended European vacation and temporarily closed the shop the day after the dress sale to Doreen. When Betty returned, she had a number of other things she had to get done and did not take Doreen's check and some other checks to the bank for three months. Betty was independently wealthy and only ran the shop as a hobby, so she had not been in need of funds. When Betty finally took Doreen's check to the bank, Betty requested that her bank, ABC Bank, deposit the check into her account. When ABC Bank, however, requested payment from Doreen's bank, XYZ Bank, the check was dishonored because of insufficient funds in Doreen's account. Although Betty did not particularly need the funds, she did not like to feel as if she had been cheated; therefore, she demanded that Doreen make the check good. Which of the following parties is the holder of the check?

A. The intermediary bank that will ultimately negotiate the check from Betty's bank to Doreen's bank

B. Betty's bank

C. Doreen's bank

D. Hot Dresses, Inc.

E. Doreen