A Refusal by a Creditor to Accept a Debtor's Offer

question 3

Multiple Choice

A refusal by a creditor to accept a debtor's offer to pay cash in settlement of his or her debt

• A) discharges the debt.
• B) excuses the debtor from future interest payments.
• C) renews the debt for six years.
• D) bars legal action by the creditor on the debt.

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Definitions:

Litigation Crisis

A situation where an organization faces significant legal challenges or lawsuits that could negatively impact its reputation and financial stability.

Threat

A potential danger or harm that may arise from external or internal factors and impact an individual, organization, or system.

Lawsuit

A legal case brought to a court by one party against another seeking a resolution to a dispute.

Puffery

The practice of making exaggerated, subjective claims about a product or service that cannot be objectively verified, often used in advertising.