Under Rules Created by the FTC in the 1970s

question 58

Multiple Choice

Under rules created by the FTC in the 1970s:

• A)Finance companies may avoid a debtor's claims and defenses if they can prove they and the transferor company were not closely connected and they had no knowledge of the seller's promises.
• B)Finance companies that have purchased negotiable installment notes from a seller are subject to the same claims and defenses that a debtor could assert against the seller,and do not have the rights of an HDC.
• C)A subsequent holder who knows a check was dishonored when he purchased it may not receive payment under the Shelter Principle.
• D)A subsequent holder may not receive payment on a check that was dishonored even if he was not aware it was dishonored when he purchased it.
• E)Finance companies that have purchased negotiable installment notes from a seller are not subject to the claims and defenses that a debtor could assert against the seller,and therefore have all the rights of an HDC.

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Definitions:

Violent Television

TV programming that contains scenes of physical aggression or harm intended to represent real-life conflicts, often criticized for potentially encouraging violent behavior in viewers.

Aggressively

In a manner that is forceful, assertive, or with intent to dominate or harm.

Punishment

A process by which a consequence immediately follows a behavior, decreasing the likelihood that the behavior will be repeated.

Bedwetting

A condition often seen in children, where involuntary urination occurs during sleep, also known as nocturnal enuresis.