The Federal Trade Commission (FTC) regulation:
A) cannot fine a seller who fails to include the FTC notice in the note or contract.
B) does not apply to persons who sell to consumers on credit.
C) is designed to protect consumers against operation of the holder in due course rule.
D) is designed to make the consumer subject to all claims and defenses of a potential holder.

Question

Quizplus · Accepted Answer

The Federal Trade Commission (FTC) has promulgated a regulation designed to protect consumers against operation of the holder in due course rule. The FTC rule applies to persons who sell to consumers on credit and have the consumer sign a note or an installment sale contract or arrange third party financing for the purchase.

The Federal Trade Commission (FTC) Regulation