In a Nonconsumer Transaction, a Holder in Due Course Takes

question 48

Multiple Choice

In a nonconsumer transaction, a holder in due course takes the instrument free from:

• A) only personal claims.
• B) all defenses of any party with whom he has not dealt, except for a limited number of defenses that are available against anyone, including a holder in due course.
• C) the defense of incapacity, duress, or illegality that renders the obligation void.
• D) no claims.

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Definitions:

Sulphuric Acid

A highly corrosive strong mineral acid with the molecular formula H2SO4, used in various industrial processes.

Hazardous Products

Items or substances that pose risks to health, safety, or the environment due to their nature or potential reactions.

Collection Agency

An organization tasked with recovering funds owed by individuals or businesses on behalf of a creditor.

Consumer Debt

Money owed by consumers as a result of purchasing goods or services that are consumable and do not appreciate over time.