A Claim in Recoupment

question 6

Multiple Choice

A claim in recoupment:

• A) is a claim of the original payee against the obligor of the instrument.
• B) must arise from the transaction that gave rise to the instrument.
• C) is actually not an offset to liability, but a defense to an instrument.
• D) can make a person a holder in due course even if he knows about it before the negotiation.

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Definitions:

Reactivity

The tendency of a chemical substance to undergo a chemical reaction either by itself or with other materials.

Diene

Organic compounds containing two double bonds, often involved in polymerization and other chemical reactions.

Dienophile

A compound that has an affinity for bonding with dienes (molecules with two double bonds) in a Diels-Alder reaction, typically featuring an electron-deficient double or triple bond.

Major Organic Product

The principal product formed in the highest yield during a chemical reaction involving organic compounds.