Under Rules Created by the FTC in the 1970s

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.