A) is generally revocable if it is gratuitous and is either oral or written. B) for consideration is irrevocable. C) becomes valid when the obligor receives notice of the assignment. D) must follow formalities. A) is generally revocable if it is gratuitous and is either oral or written. B) for consideration is irrevocable. C) becomes valid when the obligor receives notice of the assignment. D) must follow formalities. B

Exam 15: Third parties

A rock group assigns its payment under a performance contract to the Costume Shop,a business that has supplied the group with outrageous stage outfits,and to which the group owes a great sum of money.Under this arrangement the rock group is the:

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

Kirk purchases a sailboat on credit from Lakefront Sales,and Lakefront keeps a security interest in the boat.Lakefront then assigns the security interest to First Finance Co.Explain what having a security interest means.Under the UCC,what defenses can Kirk assert against First Finance?

Free

(Essay)

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Question 2

Correct Answer:

Verified

A security interest is a legal right in personal property that assures payment.Lakefront has a right to take the sailboat back if Kirk fails to make his payments.First Finance,the assignee of the security interest,generally has all the rights Lakefront Sales had.Under UCC Section 9-404,Kirk may generally assert any defense against First Finance that arose from the contract,such as refusal to continue making payments because the boat has a defective hull.Also,Kirk may generally assert any defense that arose before notice of assignment for example,if Lakefront Sales committed fraud in the sale of the boat.

An assignment:

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(Multiple Choice)

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Question 3

Correct Answer:

Verified

Most types of duties may be delegated.

(True/False)

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Question 4

If Velma,as a birthday present,assigns to Jim her contractual right to collect $50 from Wood Co. ,this would be a gratuitous assignment.

(True/False)

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Question 5

Most,but not all,contract rights are assignable.

(True/False)

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Question 6

Robert hired James,a CPA,to prepare his tax returns.James was too busy and delegated the work to Sara,also a CPA.This delegation is:

(Multiple Choice)

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Question 7

Briefly discuss the enforceability of contracts by third parties.

(Essay)

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Question 8

An assignment is effective but not necessarily enforceable from the moment it is made,regardless of whether the assignor notifies the obligor.

(True/False)

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Question 9

Jerry purchased a laptop computer for his personal use from Computer City on an installment loan contract.The sales contract stated that in the event the contract is assigned to a third party,the purchaser (Jerry)promises he will not assert any claim or defense against the assignee which he might have against Computer City.Computer City immediately assigns the contract rights to Finance USA.The computer stops working within two weeks of the purchase.

(Multiple Choice)

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Question 10

Which of the following duties can probably be delegated?

(Multiple Choice)

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Question 11

Tyron purchased a vacant lot and entered into a contract with BZ Inc.to construct a shopping center on the site.Douglas heard about this contract and built a restaurant on an adjoining piece of property because of the planned shopping center.Tyron was unable to raise the necessary capital and was unable to perform the contract with BZ,Inc.Douglas sued Tyron for breach of contract as a third party beneficiary.Douglas will probably:

(Multiple Choice)

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Question 12

Molly and Craig are the original parties to a contract.Craig is obligated to design a Website for Molly.They subsequently make an agreement with Eric that Eric should take the place of Craig and assume all of Craig's rights and duties under the contract.The agreement releases Craig from his obligations under the contract.This agreement is:

(Multiple Choice)

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Question 13

Generally,the assignment of the obligation to perform personal services is valid,as long as the services are equivalent in value.

(True/False)

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Question 14

Susan took out a life insurance policy on herself,paying all of the premium payments.She named her daughter,Jessica,as the beneficiary under the policy.Jessica has not given anything in consideration for the policy.Jessica is:

(Multiple Choice)

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Question 15

An assignment is valid and enforceable against all parties:

(Multiple Choice)

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Question 16

A rock group assigns its payment under a performance contract to the Costume Shop,a business that has supplied the group with outrageous stage outfits,and to which the group owes a great sum of money.This is:

(Multiple Choice)

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Question 17

The status of a third party is determined by:

(Multiple Choice)

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Question 18

Generally,in comparison to a donee beneficiary,a creditor beneficiary has:

(Multiple Choice)

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Question 19

If Valley Bridge contracts with Rainbow Painters to paint a bridge and the contract requires that only Sherwin Williams paint be used,then Sherwin Williams,as third party beneficiary will be able to enforce the contract against either Valley Bridge or Rainbow Painters.

(True/False)

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Question 20

Showing 1 - 20 of 45

Exam 15: Third parties

A rock group assigns its payment under a performance contract to the Costume Shop,a business that has supplied the group with outrageous stage outfits,and to which the group owes a great sum of money.Under this arrangement the rock group is the:

Kirk purchases a sailboat on credit from Lakefront Sales,and Lakefront keeps a security interest in the boat.Lakefront then assigns the security interest to First Finance Co.Explain what having a security interest means.Under the UCC,what defenses can Kirk assert against First Finance?

An assignment:

Most types of duties may be delegated.

If Velma,as a birthday present,assigns to Jim her contractual right to collect $50 from Wood Co. ,this would be a gratuitous assignment.

Most,but not all,contract rights are assignable.

Robert hired James,a CPA,to prepare his tax returns.James was too busy and delegated the work to Sara,also a CPA.This delegation is:

Briefly discuss the enforceability of contracts by third parties.

An assignment is effective but not necessarily enforceable from the moment it is made,regardless of whether the assignor notifies the obligor.

Which of the following duties can probably be delegated?

Generally,the assignment of the obligation to perform personal services is valid,as long as the services are equivalent in value.

Susan took out a life insurance policy on herself,paying all of the premium payments.She named her daughter,Jessica,as the beneficiary under the policy.Jessica has not given anything in consideration for the policy.Jessica is:

An assignment is valid and enforceable against all parties:

A rock group assigns its payment under a performance contract to the Costume Shop,a business that has supplied the group with outrageous stage outfits,and to which the group owes a great sum of money.This is:

The status of a third party is determined by:

Generally,in comparison to a donee beneficiary,a creditor beneficiary has:

If Valley Bridge contracts with Rainbow Painters to paint a bridge and the contract requires that only Sherwin Williams paint be used,then Sherwin Williams,as third party beneficiary will be able to enforce the contract against either Valley Bridge or Rainbow Painters.

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