Did George Act Properly in Hearing the Dispute

question 49

Multiple Choice

Did George act properly in hearing the dispute?

• A) He acted properly because it is presumed that arbitrators are unbiased regardless of their relationship with a party.
• B) He acted properly because he only had to reveal the information at issue if Susan had directly asked about it.
• C) He should have revealed that he was married to Bob's cousin, but none of the other information had to be revealed.
• D) He should have revealed that he had received loans from Bob, but he had no obligation to reveal other information.
• E) He should have revealed all the information and should have refused to arbitrate the case. His actions would be considered by a federal district judge and the award would likely be set aside because of showing of bias.

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Definitions:

Pay to

Directs the transfer of money or assets to a specified person, entity, or account as outlined in a financial or legal document.

Real Defenses

Legal defenses that can be used to challenge the enforceability of a negotiable instrument, such as fraud, duress, or alteration.

Holder in Due Course

An individual who has obtained a negotiable instrument in good faith and for value, and thus has certain rights to the instrument free of many defenses and claims that could be asserted against the original party.

Personal Defenses

Legal arguments or claims an individual can use to avoid enforcement of a contract based on conditions that affect their agreement specifically.