Under the Principal of Stare Decisis, a Decision of the U.S

question 6

Multiple Choice

Under the principal of stare decisis, a decision of the U.S. Supreme Court

• A) is binding on all inferior (lower) courts.
• B) is binding only for state courts.
• C) is binding only for federal courts.
• D) is nonbinding, but should be used as a guide for future cases.
• E) may be subject to judicial review.

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Definitions:

Discounted Note

A debt instrument sold for less than its face value that will pay the face value at maturity.

Proceeds

Maturity value less bank discount.

Contingent Liability

Liability on the part of one who discounts a note if the maker of the note defaults at maturity date.

Discounted Note

A debt instrument that is sold or issued for less than its face value.