Mann_BLRB 9_TB_Ch16

Business Law and the Regulation of Business

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Chapter 16—Third Parties to Contracts TRUE/FALSE 1. After an assignment, only the assignee has a right to the obligor's performance. ANS: T MSC: AACSB Analytic 2. The person who makes an assignment is the assignee. ANS: F MSC: AACSB Analytic 3. A gratuitous assignment is revocable by the assignor. ANS: T MSC: AACSB Analytic 4. Consideration is required in order to have a valid assignment. ANS: F MSC: AACSB Analytic 5. The general rule is that an assignee stands in the shoes of the assignor. He acquires the rights of the as- signor but acquires no new or additional rights. ANS: T MSC: AACSB Analytic 6. A person who owes a duty under a contract is an obligee. ANS: F MSC: AACSB Analytic 7. A party delegating his duty to a third party is known as a delegator. ANS: T MSC: AACSB Analytic 8. The delegation of a duty still leaves the delegator responsible for the performance of the duty. ANS: T MSC: AACSB Analytic 9. An incidental beneficiary has no right to enforce a contract. ANS: T MSC: AACSB Analytic 10. An intended donee beneficiary may enforce the contract against the promisor only. ANS: T MSC: AACSB Analytic 11. In some states, the vesting of a third party's rights occurs only when the third party learns of the con- tract and assents to it. ANS: T MSC: AACSB Analytic 12. Some states have statutes prohibiting an employee from assigning his future wages.
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ANS: T MSC: AACSB Analytic 13. UCC Article 9 requires certain assignments to be in writing. ANS: T MSC: AACSB Analytic 14. To protect the obligor or the public interest, some contract rights are not assignable. ANS: T MSC: AACSB Analytic 15. When a partial assignment is made, the obligor may require all the parties entitled to the promised per- formance to litigate in one action any issues concerning the contract performance. ANS: T MSC: AACSB Analytic 16. When the assignee gives consideration in exchange for an assignment, there is a contract between the assignor and the assignee that prevents the assignor from revoking the assignment without the assent of the assignee. ANS: T MSC: AACSB Analytic 17. In general, an assignment includes an implied warranty that the assignor who receives value will do nothing to defeat or impair the assignment once it is delivered. ANS: T MSC: AACSB Analytic 18. In a third-party beneficiary contract, the third party's rights arise at the time the contract is formed. ANS: T MSC: AACSB Analytic 19. If a contract explicitly provides that it may be assigned, then rights under it are assignable even if the assignment would change the duty, risk, or burden of performance on the obligor. ANS: T MSC: AACSB Analytic 20. A contract in which a party promises to render a certain performance not to the other party but to a third person is called a third-party beneficiary contract. ANS: T
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Mann_BLRB 9_TB_Ch16 - Chapter 16-Third Parties to Contracts...

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