In a Nonconsumer Transaction,a Holder in Due Course Takes the Instrument

question 13

Multiple Choice

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

• A)all claims on the part of any person.
• 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)Both (a) and (b) are correct.

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Definitions:

Payoff Matrix

A table that describes the potential outcomes or payoffs in a strategic situation, depending on the actions of two or more decision-makers.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players keep theirs unchanged.

Dominant Strategy

A strategy that is best for a player in a game regardless of what strategies other players choose.

Cartel

An agreement among competing firms to control prices or exclude entry of a new competitor in a market, often to maximize profits collectively.