Dani Signs a Note Payable to Equity Credit, Which Transfers

question 67

Multiple Choice

Dani signs a note payable to Equity Credit, which transfers the note by assignment to Finance Collection. With respect to any defenses that Dani could have raised against Equity, most likely Dani can

• A)raise those defenses against Finance.
• B)no longer present any defense to payment.
• C)not assert those defenses against Finance.
• D)claim more defenses against Finance than Equity.

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Definitions:

Monitoring Employees

The process of overseeing employees' work activities and performance, often through the use of technology or other means.

Asymmetric Information

A situation in which one party in a transaction has more or superior information compared to another.

Prevalent

Widespread in a particular area at a particular time; commonly occurring or accepted.

Moral Hazard

A situation where one party is more likely to take risks because another party bears the cost of those risks.