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Acme Engineering Needed Cash and on March 14th Assigned a Block

Question 44

Multiple Choice

Acme Engineering needed cash and on March 14th assigned a block of its accounts receivable to Wellington Finance Company. On March 21st, it assigned another block to Bristol Finance Company. By an oversight, the second block contained an account, a receivable from Smith, which Acme had already assigned to Wellington. The notice of assignment from Bristol arrived at the Smith offices on March 24th, and Wellington's notice arrived on March 28th. What is the most correct action that Smith should take?


A) Pay any demand of Acme made on March 16th or 23rd; pay any demand of Bristol on or after March 24th.
B) Pay any demand of Acme made on March 13th; pay any demand of Wellington on or after March 28th.
C) Refuse to pay all Wellington demands.
D) Refuse to pay all Acme demands made after March 24th.
E) A, C, D.

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