RPM issued a check for $96,000 to Systems Marketing for an advertising campaign.A few days later, RPM decided not to go through with the deal and placed a written stop-payment order on the check.RPM and Systems had no further contact for many months.Three weeks after the stop-payment between with funds from RPM's account.Because of the amount of the check and because the check was more than six (6) months old (stale), the signature on the check should have been specially certified according to standard banking procedures and Bank One's own policies, but it was not.RPM filed a suit in federal district court against Bank One to recover the amount of the check.

1. How long is a written stop-payment order effective?What else could RPM have done to prevent this check from being cashed?
2. What would happen if it turned out that RPM did not have a legitimate reason for stopping payment on the check?
3. What are a bank's obligations with respect to stale checks?Should Bank One have contacted RPM before paying the check? Why or why not?
4. Assume that the endorsement on the check was a forgery.Would a court be likely to hold the bank liable for the amount of the check because it failed to verify the signature on the check?Why or why not?