If Royce Comes to You and Asks What Type of Personal

question 14

Multiple Choice

If Royce comes to you and asks what type of personal defenses can he raise against enforcement of a negotiable instrument by an ordinary holder,which of the following would you say qualify as such?

• A) mental illness
• B) illegality of a contract
• C) undue influence
• D) discharge of an instrument by payment or cancellation
• E) All of these are correct.

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Definitions:

Deadweight Loss

A shortfall in economic optimization that occurs when the balance for a good or service is missed or impossible to hit.

Tax

A compulsory financial charge or levy imposed by a government on individuals or entities to fund public expenditure.

Consumer Surplus

The difference between the aggregate willingness to pay by consumers for a good or service and the aggregate actual payment.

Deadweight Loss

An economic inefficiency caused by a disruption in market equilibrium, leading to a loss of societal welfare.