Asked by Adison Evans on May 22, 2024
Verified
The FTC upholds the preferential position enjoyed by a holder in due course of instruments concerning debts arising out of consumer credit contracts.
FTC
stands for the Federal Trade Commission, a U.S. government agency tasked with consumer protection and the enforcement of antitrust laws to promote competition.
Holder in Due Course
A party that has acquired a negotiable instrument in good faith and for value, and thus has certain rights to enforce the instrument free from many defenses.
- Recognize the tasks and positions of a holder in due course, in addition to the protections allocated to them.
Verified Answer
RC
Ramón CastilloMay 24, 2024
Final Answer :
False
Explanation :
The FTC (Federal Trade Commission) enforces the FTC Holder Rule, which does not allow a holder in due course to be in a preferential position regarding claims and defenses on debts arising out of consumer credit contracts. This means consumers can assert against any holder of the credit contract the same claims and defenses they could assert against the seller of the goods or services.
Learning Objectives
- Recognize the tasks and positions of a holder in due course, in addition to the protections allocated to them.