Clint Induces David, by Fraud in the Inducement, to Make

question 50

Multiple Choice

Clint induces David, by fraud in the inducement, to make an instrument payable to the order of Clint.Clint then negotiates the instrument to Erin, a holder in due course.If Clint later reacquires the instrument from Erin:

• A)Clint is a holder in due course.
• B)Clint is not a holder in due course, but he succeeds to the rights of one, because of the shelter rule.
• C)Clint does not succeed to Erin's rights as a holder in due course and remains subject to the defense of fraud.
• D)because fraud in the inducement is a real defense, it can be used against both Clint and Erin.

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Definitions:

P-Value

A statistical measure that helps scientists determine the significance of their research results.

Test Statistic

A value calculated from sample data used to determine whether to reject the null hypothesis in a statistical hypothesis test.

P-Value

The potential of observing test results that are at least as extreme as the actual ones, under the belief that the null hypothesis is accurate.

Test Statistic

A calculated value used in statistical hypothesis testing that helps decide whether to reject the null hypothesis.