Ch16-TB2-WBL-10e

Ch16-TB2-WBL-10e - Chapter16 ThirdPartyRights

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Chapter 16 Third Party Rights N.B.:   TYPE  indicates that a question is new, modified, or unchanged, as  follows. N A question  new  to this edition of the Test Bank. + A question  modified  from the previous edition of the Test Bank, = A question  included  in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS 1. A retail business can assign its right to receive payment from customers to  a financing company for cash. ANSWER: T PAGE: 309 TYPE: = 2. Privity of contract refers to the fact that only the actual parties to a con- tract should have rights and liabilities under the contract. ANSWER: T PAGE: 309 TYPE: = 3. A party to a contract may  not  transfer the rights arising from the contract  to another. ANSWER: F PAGE: 309 TYPE: N 4. An assignee can compel the obligor to perform. ANSWER: T PAGE: 310 TYPE: + 155
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156 TEST BANK 2—UNIT THREE: CONTRACTS AND E-CONTRACTS 5. An unconditional assignment of rights in a contract will extinguish the  rights of the assignor. ANSWER: T PAGE: 310 TYPE: =
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CHAPTER 16: THIRD PARTY RIGHTS 157 6. An assignment of an insurance policy cannot be prohibited. ANSWER: F PAGE: 312 TYPE: = 7. Assignments of negotiable instruments are not generally permitted. ANSWER: F PAGE: 313 TYPE: = 8. A contract that contains a clause prohibiting its assignment normally  can  be assigned. ANSWER: F PAGE: 313 TYPE: + 9. Giving   notice   is   not   legally   required   to   establish   the   validity   of   an  assignment. ANSWER: T PAGE: 313 TYPE: N 10. In most states, a prior assignment usually prevails over a subsequent  assignment. ANSWER: T PAGE: 313 TYPE: = 11. Generally, any duty can be delegated. ANSWER: T PAGE: 314 TYPE: N 12. A delegation does not relieve the party making it of the obligation to per- form if the party to whom the duty is delegated fails to perform. ANSWER: T PAGE: 315 TYPE: = 13. A third party has no rights to a contract to which he or she is not a party. ANSWER: F PAGE: 316 TYPE: + 14. An   incidental   beneficiary   is   not   entitled   to   enforce   the   promise   of   a  promisor. ANSWER: T PAGE: 316 TYPE: = 15. An intended beneficiary is entitled to enforce the promise of a promisor.
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158 TEST BANK 2—UNIT THREE: CONTRACTS AND E-CONTRACTS ANSWER: T PAGE: 316 TYPE: N
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CHAPTER 16: THIRD PARTY RIGHTS 159 16. A “donee” beneficiary is always an “incidental” beneficiary. ANSWER: F PAGE: 317 TYPE: N 17. A creditor beneficiary has the power to sue the promisee if the contract is  breached. ANSWER:
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This note was uploaded on 10/15/2010 for the course ACCT ACCT40 taught by Professor Birnbaum during the Fall '08 term at CUNY Brooklyn.

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Ch16-TB2-WBL-10e - Chapter16 ThirdPartyRights

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