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.

Exam 16: 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)

4.8/5

(40)

Question 1

Correct Answer:

Verified

Most types of duties may be delegated.

Free

(True/False)

4.8/5

(37)

Question 2

Correct Answer:

Verified

True

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)

4.9/5

(35)

Question 3

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:

(Multiple Choice)

4.9/5

(39)

Question 4

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)

4.9/5

(34)

Question 5

Claims for personal injury are generally assignable.

(True/False)

4.8/5

(28)

Question 6

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)

4.9/5

(38)

Question 7

A party may make either an assignment or a delegation,but cannot make both an assignment and a delegation simultaneously.

(True/False)

5.0/5

(37)

Question 8

If Ray agrees to rake leaves for Michelle in exchange for Michelle's promise to pay off the debt Ray owes to Dean,then Dean is a donee beneficiary of the agreement between Ray and Michelle.

(True/False)

4.9/5

(27)

Question 9

First Bank has agreed to loan Teresa $10,000 for use in her cosmetics business.If Teresa sells the business to Melissa before the loan is disbursed,Teresa can assign her right to the loan to Melissa.

(True/False)

4.8/5

(27)

Question 10

Amanda buys a vacuum cleaner to use in her home from retailer Andy.Amanda promises to pay for it in six monthly installment of $50 each.Andy assigns the contract to Big Finance Co.who paid value and took without notice of any defense.Amanda has stopped making payments because the vacuum stopped working and Andy refuses to honor the express warranty he made to her at the time of the sale.Big Finance Co.sues Amanda for nonpayment.Generally,any defense that Amanda may have against Andy is good against Big Finance Co.

(True/False)

4.9/5

(35)

Question 11

Most,but not all,contract rights are assignable.

(True/False)

4.7/5

(39)

Question 12

Wright Company contracted with the city of St.Louis to train and employ disadvantaged youths.If Wright fails to fulfill the contract and is sued by one of the disadvantaged youths,the youth would:

(Multiple Choice)

4.8/5

(30)

Question 13

Johann,a well-known musician,agrees to give ten guitar lessons to Elton for $2,000.Nothing in the contract itself prohibits a delegation.If Johann delegates his obligation to Eugene,a second-year musical student and enthusiastic guitar player,then the delegation will probably be:

(Multiple Choice)

4.8/5

(37)

Question 14

In the Schauer v.Mandarin Gems of California,Inc.case,the court held:

(Multiple Choice)

4.9/5

(27)

Question 15

Ted and Alice own their recreational vehicle subject to a security agreement to Third U.S.Bank to secure the repayment of the purchase money loan.Ted and Alice sell their RV to Bob and Carol,who agree to take over the loan payments to the bank.There is no novation with the bank.Under these facts,if Bob and Carol do not make the loan payments,Third U.S.Bank:

(Multiple Choice)

4.9/5

(31)

Question 16

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)

4.8/5

(36)

Question 17

An assignment is effective from the moment it is made,regardless of whether the assignor notifies the obligor.

(True/False)

4.7/5

(39)

Question 18

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

(True/False)

4.9/5

(37)

Question 19

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)

4.8/5

(39)

Question 20

Showing 1 - 20 of 45

Exam 16: 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:

Most types of duties may be delegated.

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:

Claims for personal injury are generally assignable.

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.

A party may make either an assignment or a delegation,but cannot make both an assignment and a delegation simultaneously.

If Ray agrees to rake leaves for Michelle in exchange for Michelle's promise to pay off the debt Ray owes to Dean,then Dean is a donee beneficiary of the agreement between Ray and Michelle.

First Bank has agreed to loan Teresa $10,000 for use in her cosmetics business.If Teresa sells the business to Melissa before the loan is disbursed,Teresa can assign her right to the loan to Melissa.

Most,but not all,contract rights are assignable.

Wright Company contracted with the city of St.Louis to train and employ disadvantaged youths.If Wright fails to fulfill the contract and is sued by one of the disadvantaged youths,the youth would:

Johann,a well-known musician,agrees to give ten guitar lessons to Elton for $2,000.Nothing in the contract itself prohibits a delegation.If Johann delegates his obligation to Eugene,a second-year musical student and enthusiastic guitar player,then the delegation will probably be:

In the Schauer v.Mandarin Gems of California,Inc.case,the court held:

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:

An assignment is effective from the moment it is made,regardless of whether the assignor notifies the obligor.

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

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

Introduction To Law

Business Ethics And Social Responsibility

Dispute Resolution

Common Law,Statutory Law,And Administrative Law

Constitutional Law

Intentional Torts And Business Torts

Negligence And Strict Liability

Crime

International Law

Introduction To Contracts

Agreement

Consideration

Legality

Capacity And Consent

Written Contracts

Performance And Discharge

Remedies

Practical Contracts

Introduction To Sales

Ownership And Risk

Warranties And Product Liability

Performance And Remedies

Secured Transactions

Creating A Negotiable Instrument

Liability For Negotiable Instruments

Accountants' Liability

Agency Law

Employment Law

Labor Law

Starting A Business

Partnerships

Life And Death Of A Corporation

Corporate Management

Shareholders

Securities Regulation

Bankruptcy

Antitrust

Consumer Law

Environmental Law

Cyberlaw

Intellectual Property

Real Property And Tenant-landlord Law

Personal Property And Bailment

Planning For The Future: Wills,Trusts,And Insurance

Filters