Question 1

In Sogeti USA LLC v.Scariano,the case in the text,the court held that:

Accepted Answer

A) express consent of an employee is not required before an employer's contractual rights can be assigned to,and enforced by,a successor company. 
B) Martinez violated the noncompetition provision that he agreed to with SARK. 
C) a noncompetition provision can only ever be assignable when the contract containing the provision contemplates its assignability. 
D) public policy requires an employee's consent before an employer's contractual rights can be assignable. 
A) express consent of an employee is not required before an employer's contractual rights can be assigned to,and enforced by,a successor company. 
B) Martinez violated the noncompetition provision that he agreed to with SARK. 
C) a noncompetition provision can only ever be assignable when the contract containing the provision contemplates its assignability. 
D) public policy requires an employee's consent before an employer's contractual rights can be assignable.

Question 2

Hailey contracts with Construction Inc.to build a valuable structure on her land.The performance of the contract would constitute a benefit to Connie,Hailey's next-door neighbor,by increasing the value of Connie's land.However,Hailey breaches the contract.Which of the following statements is true?

Accepted Answer

A) Connie's benefit was purely incidental to the contracting parties' primary purpose. 
B) Connie can sue Hailey and recover damages for her breach. 
C) Connie is a donee beneficiary. 
D) Connie acquired rights under the contract. 
A) Connie's benefit was purely incidental to the contracting parties' primary purpose. 
B) Connie can sue Hailey and recover damages for her breach. 
C) Connie is a donee beneficiary. 
D) Connie acquired rights under the contract.

Question 3

A contract may be enforced by a third-party beneficiary if that beneficiary:

Accepted Answer

A) is an incidental beneficiary. 
B) is a witness to the contract. 
C) is the intended beneficiary. 
D) has given some consideration. 
A) is an incidental beneficiary. 
B) is a witness to the contract. 
C) is the intended beneficiary. 
D) has given some consideration.

Question 4

Mike has a three-year lease on the apartment he occupies.He has lived there one year.He now wants to leave and go to Aspen,Colorado to be a ski instructor.However,Mike's landlord will not release him from the lease,and threatens to sue him if he breaks his lease.Mike finds Paul to take over the last two years of the lease,but Mike is worried that Paul might cause damage or in other ways inflict loss and that he,Mike,might be held financially responsible.In order to assure Mike that he will be completely discharged from all obligations under his lease,Mike should attempt to bring about:

Accepted Answer

A) an assignment. 
B) a novation. 
C) either an assignment or novation-it will not affect Mike's future liability. 
D) neither an assignment nor a novation-both will not accomplish Mike's objective. 
A) an assignment. 
B) a novation. 
C) either an assignment or novation-it will not affect Mike's future liability. 
D) neither an assignment nor a novation-both will not accomplish Mike's objective.

Question 5

In a novation:

Accepted Answer

A) the original obligor is completely discharged from his/her obligations under the contract. 
B) the original obligee is completely discharged from his/her obligations under the contract. 
C) the original obligor remains secondarily obligated. 
D) both the original obligee and the original obligor remain obligated. 
A) the original obligor is completely discharged from his/her obligations under the contract. 
B) the original obligee is completely discharged from his/her obligations under the contract. 
C) the original obligor remains secondarily obligated. 
D) both the original obligee and the original obligor remain obligated.

Question 6

Hailey contracts with Construction Inc.to build a valuable structure on her land.The performance of the contract would constitute a benefit to Connie,Hailey's next-door neighbor,by increasing the value of Connie's land.In this situation,Connie is a(n):

Accepted Answer

A) incidental beneficiary. 
B) donee beneficiary. 
C) promisee. 
D) creditor beneficiary. 
A) incidental beneficiary. 
B) donee beneficiary. 
C) promisee. 
D) creditor beneficiary.

Question 7

Amelia contracts to have her portrait painted by Hamilton for $10,000.Hamilton assigns the contract to Drew,another artist.Has there been a valid delegation of duties here? Why or why not?

Accepted Answer

There is no delegation of duties here.In

Question 8

In Johnson v.Bank of America,N.A. ,the case in the text,the court held that:

Accepted Answer

A) the contractual duty was delegable because it did not materially change the benefit of the bargain and Johnson did not have any interest in Bank of America performing the contract. 
B) the contractual duty was delegable because delegations in the trade were common. 
C) the contractual duty was not delegable because Fiserv had an improper financial motive. 
D) the contractual duty was not delegable because it was prohibited by statute. 
A) the contractual duty was delegable because it did not materially change the benefit of the bargain and Johnson did not have any interest in Bank of America performing the contract. 
B) the contractual duty was delegable because delegations in the trade were common. 
C) the contractual duty was not delegable because Fiserv had an improper financial motive. 
D) the contractual duty was not delegable because it was prohibited by statute.

Question 9

Once a party properly delegates a duty to the delegatee,that party is relieved of any obligation to perform the duty.

Accepted Answer

A) True 
 B)False

Question 10

Who performs the duty under a proper delegation?

Accepted Answer

A) Obligor 
B) Obligee 
C) Delegator 
D) Delegatee 
A) Obligor 
B) Obligee 
C) Delegator 
D) Delegatee

Question 11

Antiassignment clauses in contracts generally are:

Accepted Answer

A) enforceable but read narrowly. 
B) enforceable but not covered by the UCC. 
C) unenforceable because they are unconscionable. 
D) unenforceable because they are void. 
A) enforceable but read narrowly. 
B) enforceable but not covered by the UCC. 
C) unenforceable because they are unconscionable. 
D) unenforceable because they are void.

Question 12

Most courts hold that as long as the ________ intended to benefit a third party,the third party is an intended beneficiary.

Accepted Answer

A) promisor 
B) offeror 
C) promisee 
D) offeree 
A) promisor 
B) offeror 
C) promisee 
D) offeree

Question 13

Barry and Andrew contract for the sale of 100 widgets (goods)from Barry to Andrew for $1,000.The contract contains a clause prohibiting assignment of "the contract." Nonetheless,Andrew assigns "the contract" to Smith.Is there a valid assignment of contract rights here? Is there a delegation of duties?

Accepted Answer

Section 2-210 of Article 2 contains prin

Question 14

If the promisor's performance is intended to satisfy a legal duty that the promisee owes to a third party,the third party is a(n):

Accepted Answer

A) donee beneficiary. 
B) creditor beneficiary. 
C) assignee. 
D) incidental beneficiary. 
A) donee beneficiary. 
B) creditor beneficiary. 
C) assignee. 
D) incidental beneficiary.

Question 15

Which of the following is a type of substituted contract in which the obligee agrees to discharge the original obligor and to substitute a new obligor in his/her place?

Accepted Answer

A) Assignment 
B) Delegation 
C) Certification 
D) Novation 
A) Assignment 
B) Delegation 
C) Certification 
D) Novation

Question 16

A donee beneficiary of a contract can recover under that contract.

Accepted Answer

A) True 
 B)False

Question 17

Anne induces Ben's consent to contract under duress.Anne later assigns her rights under the contract to Carl.Ben may assert the doctrine of duress against Anne as a ground for avoiding the contract.

Accepted Answer

A) True 
 B)False

Question 18

Melanie owes $250 to Jessica.Jessica gifts the right to receive the money from Melanie to her daughter Kelly in writing.This assignment is:

Accepted Answer

A) unenforceable since a beneficiary modification is prohibited. 
B) enforceable despite the lack of consideration. 
C) unenforceable because contractual rights cannot be assigned. 
D) enforceable because the gift is made in writing. 
A) unenforceable since a beneficiary modification is prohibited. 
B) enforceable despite the lack of consideration. 
C) unenforceable because contractual rights cannot be assigned. 
D) enforceable because the gift is made in writing.

Question 19

Which of the following transfers will generally be valid without the consent of the other parties?

Accepted Answer

A) The assignment by the lessee of a lease contract where rent is a percentage of sales. 
B) The assignment by a purchaser of goods of the right to buy on credit without giving security. 
C) The assignment by an architect of a contract to design a building. 
D) The assignment by a patent holder of the right to receive royalties. 
A) The assignment by the lessee of a lease contract where rent is a percentage of sales. 
B) The assignment by a purchaser of goods of the right to buy on credit without giving security. 
C) The assignment by an architect of a contract to design a building. 
D) The assignment by a patent holder of the right to receive royalties.

Question 20

The effect of a valid delegation of duties is that it:

Accepted Answer

A) discharges the delegator from any further liability. 
B) is an automatic novation. 
C) discharges the obligee from any further liability. 
D) appoints the delegatee to perform the delegator's duty to the obligee. 
A) discharges the delegator from any further liability. 
B) is an automatic novation. 
C) discharges the obligee from any further liability. 
D) appoints the delegatee to perform the delegator's duty to the obligee.

Exam 17: Rights of Third Parties

In Sogeti USA LLC v.Scariano,the case in the text,the court held that:

Hailey contracts with Construction Inc.to build a valuable structure on her land.The performance of the contract would constitute a benefit to Connie,Hailey's next-door neighbor,by increasing the value of Connie's land.However,Hailey breaches the contract.Which of the following statements is true?

A contract may be enforced by a third-party beneficiary if that beneficiary:

In a novation:

Hailey contracts with Construction Inc.to build a valuable structure on her land.The performance of the contract would constitute a benefit to Connie,Hailey's next-door neighbor,by increasing the value of Connie's land.In this situation,Connie is a(n):

Amelia contracts to have her portrait painted by Hamilton for $10,000.Hamilton assigns the contract to Drew,another artist.Has there been a valid delegation of duties here? Why or why not?

In Johnson v.Bank of America,N.A. ,the case in the text,the court held that:

Once a party properly delegates a duty to the delegatee,that party is relieved of any obligation to perform the duty.

Who performs the duty under a proper delegation?

Antiassignment clauses in contracts generally are:

Most courts hold that as long as the ________ intended to benefit a third party,the third party is an intended beneficiary.

If the promisor's performance is intended to satisfy a legal duty that the promisee owes to a third party,the third party is a(n):

Which of the following is a type of substituted contract in which the obligee agrees to discharge the original obligor and to substitute a new obligor in his/her place?

A donee beneficiary of a contract can recover under that contract.

Anne induces Ben's consent to contract under duress.Anne later assigns her rights under the contract to Carl.Ben may assert the doctrine of duress against Anne as a ground for avoiding the contract.

Melanie owes $250 to Jessica.Jessica gifts the right to receive the money from Melanie to her daughter Kelly in writing.This assignment is:

Which of the following transfers will generally be valid without the consent of the other parties?

The effect of a valid delegation of duties is that it:

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