What is the main idea behind the Holder in Due Course rule?
What will be an ideal response?
The Holder in Due Course rule is designed to allow people involved in purchase money transactions to use claims and defenses against a holder in due course. It makes it an unfair trade practice for a seller, in the course of financing a consumer purchase or certain leases of goods or services, to use procedures to separate the consumer's duty to pay from the seller's duty to perform.
You might also like to view...
What happens to the accounting equation when the adjustment that recognizes accrued interest revenue is recorded?
a. Assets increase and liabilities increase. b. Assets increase and stockholders' equity increases. c. Assets decrease and liabilities decrease. d. Stockholders' equity increases and decreases by the same amount.
A company is analyzing its month-end results by comparing it to both static and flexible budgets. During the month, the actual fixed costs were lower than the expected fixed costs as per the static budget. This difference results in a(n) ________.
A) unfavorable flexible budget variance for fixed costs B) favorable sales volume variance for fixed costs C) favorable flexible budget variance for fixed costs D) unfavorable sales volume variance for fixed costs
Which of the following accounts ordinarily appears in the post-closing trial balance?
A) Fees Earned B) Supplies Expense C) Zane White, Drawing D) Unearned Rent
Which of the following statements is true about the willingness of foreign courts to enforce U.S. tort judgments?
A) Courts in several nations, including Germany and England, have ruled that punitive damage awards violate their public policy interest in maintaining a purely compensatory tort system. B) Germany and England are the only two countries whose courts have agreed to enforce U.S. punitive damages awards. C) Foreign courts have demonstrated a willingness to support awards of punitive damages, but they have refused to enforce the awards of nominal and compensatory damages. D) All foreign courts have demonstrated a willingness to enforce all U. S. tort judgments, including judgments for punitive, nominal, or compensatory damages.