Question 1

Courts have held that a beneficiary's rights cannot be lost by modification or discharge.This is known as:

Accepted Answer

A)  assignment. 
B)  dissociation. 
C)  malfeasance. 
D)  vesting. 
A)  assignment. 
B)  dissociation. 
C)  malfeasance. 
D)  vesting.

Question 2

Al hires Bob to move his furniture to his new house.On the day of the move,Bob does not feel like moving furniture,so he asks his friend Chuck to move the furniture.Chuck decides to leave before completing the move in order to watch a football game on TV.Al has to delay his move and hire another mover at a higher price.Al wants to sue Bob to recover for his damages.Given these facts,Al will most likely:

Accepted Answer

A)  lose,because it was Chuck,not Bob,who failed to fulfill his duty to Al. 
B)  win,because Bob's duty to Al was not delegable. 
C)  win,because Bob is liable to Al. 
D)  lose,because he failed to insist on Bob's performance. 
A)  lose,because it was Chuck,not Bob,who failed to fulfill his duty to Al. 
B)  win,because Bob's duty to Al was not delegable. 
C)  win,because Bob is liable to Al. 
D)  lose,because he failed to insist on Bob's performance.

Question 3

The person who receives a right under a contract has obtained a delegation.

Accepted Answer

A) True 
 B)False

Question 4

A valid assignment always requires:

Accepted Answer

A)  consideration. 
B)  writing. 
C)  filing with a local court. 
D)  an intention to assign. 
A)  consideration. 
B)  writing. 
C)  filing with a local court. 
D)  an intention to assign.

Question 5

Stella buys a car from Marble Sales for $10,000 on credit.Joel's daughter likes the car and so Joel buys the car from Stella.Joel also agrees to pay the balance due to Marble Sales,on behalf of Stella.Joel defaults.Marble Sales can bring a suit for breach of contract against:

Accepted Answer

A)  Stella only. 
B)  Joel only. 
C)  Stella and Joel. 
D)  Joel and his daughter. 
A)  Stella only. 
B)  Joel only. 
C)  Stella and Joel. 
D)  Joel and his daughter.

Question 6

Jim's contract with Frank obligated Jim to pay Frank $10,000.Frank properly assigns the contract to Abel.At that time,Abel notifies Jim about the assignment.Jim,however,forgets and pays the $10,000 to Frank.By this time,Abel is screaming for his money.However,by then,Frank goes into bankruptcy.In this case:

Accepted Answer

A)  Jim is liable to Abel for $10,000. 
B)  Abel is out of luck because Jim performed his obligation by paying Frank. 
C)  Jim is liable to Abel not for the $10,000,but for his breach of the implied warranty that the assignor is solvent. 
D)  Abel is out of luck because his notification was oral rather than written. 
A)  Jim is liable to Abel for $10,000. 
B)  Abel is out of luck because Jim performed his obligation by paying Frank. 
C)  Jim is liable to Abel not for the $10,000,but for his breach of the implied warranty that the assignor is solvent. 
D)  Abel is out of luck because his notification was oral rather than written.

Question 7

The assignor impliedly warrants to the assignee that the obligor has capacity to contract.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following characterizes assignability?

Accepted Answer

A)  An assignment is ineffective if it occurs in the present. 
B)  Assignment is ineffective in the case of land rights. 
C)  Assignment is ineffective when contrary to public policy. 
D)  Assignment is mostly effective in the case of wage earners. 
A)  An assignment is ineffective if it occurs in the present. 
B)  Assignment is ineffective in the case of land rights. 
C)  Assignment is ineffective when contrary to public policy. 
D)  Assignment is mostly effective in the case of wage earners.

Question 9

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 10

Denise contracts with Long Life Insurance Co. ,agreeing to pay premiums in return for which the company agrees to pay $500,000 to Denise's husband Barn when Denise dies.Barn is a(n):

Accepted Answer

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

Exam 17: Rights of Third Parties

Courts have held that a beneficiary's rights cannot be lost by modification or discharge.This is known as:

The person who receives a right under a contract has obtained a delegation.

A valid assignment always requires:

Stella buys a car from Marble Sales for $10,000 on credit.Joel's daughter likes the car and so Joel buys the car from Stella.Joel also agrees to pay the balance due to Marble Sales,on behalf of Stella.Joel defaults.Marble Sales can bring a suit for breach of contract against:

The assignor impliedly warrants to the assignee that the obligor has capacity to contract.

Which of the following characterizes assignability?

Antiassignment clauses in contracts generally are:

Denise contracts with Long Life Insurance Co. ,agreeing to pay premiums in return for which the company agrees to pay $500,000 to Denise's husband Barn when Denise dies.Barn is a(n):

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Criminal Law and Procedure

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

Introduction to Contracts

The Agreement: Offer

The Agreement: Acceptance

Consideration

Reality of Consent

Capacity to Contract

Illegality

Writing

Performance and Remedies

Formation and Terms of Sales Contracts

Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Bankruptcy

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Transfers

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Introduction to Forms of Business and Formation of Partnerships

Operation of Partnerships and Related Forms

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, Limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

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The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

The Clayton Act, the Robinson-Patman Act, and Antitrust Exemptions and Immunities

Employment Law

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