If a Trader Holding a Long Position in Corn Futures

question 9

Multiple Choice

If a trader holding a long position in corn futures fails to meet the obligations of a futures contract, the party that is hurt by the failure is

• A) the offsetting short trader.
• B) the corn farmer.
• C) the clearinghouse.
• D) the broker.
• E) the commodities dealer.

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Definitions:

Contributorily Negligent

Refers to a situation where the plaintiff is found to have played a part in their own harm, potentially reducing the compensation they receive.

Duty of Care

A legal obligation to adhere to a standard of reasonable care while performing acts that could foreseeably cause harm to others.

Res Ipsa Loquitor

A legal doctrine allowing the presumption of negligence by the defendant when the accident could not have happened without negligence.

Defective Product

An item that fails to function as intended due to a flaw in design, manufacture, or marketing, presenting potential harm to users.