Barbara Owes Arthur $2,000

Multiple Choice

Barbara owes Arthur $2,000. On July 1, Arthur assigns the right to the $2,000 to Caleb. Thereafter, on July 15, Arthur assigns the same right to David, who in good faith gives value for it and knows nothing about the first assignee. In this case:

A) Caleb has the right to the payment of $2,000.
B) David has the right to the $2,000.
C) neither Caleb nor David can claim the $2,000.
D) The rule differs by state.