Bert and Ernie collaborate to defraud Oscar, who is induced to give Bert a note payable to
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Question:
Bert and Ernie collaborate to defraud Oscar, who is induced to give Bert a note payable to Bert's order. Bert indorses the note for value to Big Bird, an HDC. Later, Big Bird sells the note to Ernie (Bert's co-conspirator). Under the shelter principle,
a. | the principal amount of the note is sheltered without recourse.
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b. | Ernie's right to repurchase the note from Big Bird is limited.
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c. | Ernie attains HDC status by acquiring the note.
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d. | Ernie cannot acquire HDC rights in the note. |
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date: