Merrill Lynch, Pierce, Fenner & Smith, Inc. v. E. B. Brooks, Jr.

Essentially this case may be summarized as one where a commodities broker extended credit — over-extended that is — to a sophisticated commodity futures investor who at all times possessed knowledge of his deficient margin account status and who now contends he should not be required to pay back any remaining indebtedness ^because the extension of credit violated a rule or regulation of the Chicago Board of Trade. To adopt such an argument would permit commodity futures investors know ingly to accept extensions of credit from a broker which violate the Board of Trade’s rules or regulations…