Which of the Following Is Not a Method That May

question 18

Multiple Choice

Which of the following is not a method that may be available to an agency charged with protection of the public?

• A) A mandatory recall of a defective product
• B) Imposing mandatory and binding arbitration regarding the agency's dispute with a manufacturer producing a defective product without prior agreement
• C) Issuance of a cease and desist order stopping production of a defective product
• D) All of the above can be valid exercises of an agency's right to protect the public.

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Definitions:

Dishonors

Refers to the failure to accept or pay a bill of exchange or promissory note when due.

Dishonored Note

A promissory note that has not been paid by the maker at maturity.

Maturity

The date on which a financial obligation or investment becomes due for payment or achieves its full value.

Note Receivable

A written promise that money will be paid by the debtor to the creditor at a certain date in the future.