The Federal Trade Commission (FTC) has adopted a regulation that:
A) follows the traditional rights of a holder in due course in consumer purchase transactions.
B) alters the rights of a holder in due course in consumer purchase transactions.
C) prevents a consumer who gives a negotiable instrument to use the defense of fraudulent inducement.
D) denies all rights of a holder in due course in consumer purchase transactions.

Question

Quizplus · Accepted Answer

The Federal Trade Commission (FTC) has adopted a regulation that alters the rights of a holder in due course in consumer purchase transactions. This regulation allows a consumer who gives a negotiable instrument to use additional defenses (breach of warranty or fraudulent inducement) against payment of the instrument against even a holder in due course.

The Federal Trade Commission (FTC) Has Adopted a Regulation That