Asked by Brendan Callanan on Jun 30, 2024
Verified
To protect consumers who buy defective products, the Federal Trade Commission adopted FTC Rule 433 to effectively bolster the HDC doctrine in consumer transactions.
FTC Rule 433
Known as the Holder in Due Course Rule, it protects consumers by allowing them to make claims directly against creditors in certain credit transactions.
HDC Doctrine
Refers to the Holder in Due Course doctrine, which provides protections to purchasers of negotiable instruments who take them in good faith, for value, and without notice of certain defects.
Consumer Transactions
The purchase and sale of goods or services between a buyer, typically an individual or household, and a seller for personal use.
- Comprehend the impact of the FTC Rule 433 on consumer transactions involving negotiable instruments.
Verified Answer
MG
Madison GublerJul 03, 2024
Final Answer :
False
Explanation :
FTC Rule 433, also known as the Holder in Due Course Rule, was adopted to limit the HDC doctrine in consumer transactions, not bolster it. It allows consumers to assert against any holder of the credit contract all claims and defenses they could assert against the seller of the goods or services.
Learning Objectives
- Comprehend the impact of the FTC Rule 433 on consumer transactions involving negotiable instruments.