A Holder Is on Notice That an Instrument Is Defective

question 39

Multiple Choice

A holder is on notice that an instrument is defective when the holder:

• A) demands payment.
• B) brings suit for the collection of an instrument.
• C) gives a discharge or release from liability on the instrument.
• D) Has actual notice of a defect

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Definitions:

Chebysheff's Theorem

A statistical theorem that provides a minimum bound on the proportion of observations within a specified number of standard deviations from the mean for any distribution shape.

Bell Shaped Distribution

A probability distribution that forms a symmetric bell-shaped curve, commonly associated with the normal distribution.

Coefficient of Variation

A uniform metric showing the spread of a probability or frequency distribution as a percentage relative to the average.

Standard Deviation

A statistic that measures the dispersion or variation of a set of data points from their mean.