If a consumer bill or note is marked "consumer purchase" as required by the Bills of Exchange Act, the maker may raise a defence against a finance company that takes the bill or note for value and through endorsement based on breach of contract by the payee.

Question

Quizplus · Accepted Answer

According to the Bills of Exchange Act, if a consumer bill or note is marked "consumer purchase", then the maker may raise a defence against a finance company that takes the bill or note for value and through endorsement based on breach of contract by the payee. Therefore, the statement is true.

If a Consumer Bill or Note Is Marked "Consumer Purchase