Law Chapter 17 Practice Test

Leon contracts to install automatic watering troughs in Kendall's dairy barn. Leon then becomes seriously ill and contracts with Jake to install the troughs. Jake is unreliable and never shows up to install the troughs. In most states, Kendall can sue a. ​Jake or Leon. b. ​no one. c. ​Leon only. d. ​Jake only.

a. Jake or Leon

Uri and Victor enter into a contract by which Uri promises to deliver business cards, advertising banners, and other marketing materials to Victor. Uri later transfers his duty under the contract to Wren. Uri is a. ​a delegator. b. ​an assignee. c. ​an assignor. d. ​a delegatee.

a. a delegator

Ilene and Jerry enter into a contract under which Ilene agrees to provide grounds keeping services for Jerry's Family Fun Center. Under an anti-delegation clause, the contract can prohibit and prevent the transfer of a. ​all duties under the contract. b. ​only duties that are personal in nature. c. ​no duties under the contract. d. ​only duties that are impersonal in nature.

a. all duties under the contract

Faye makes and sells furniture. Faye and Glen enter into a contract for the delivery of Faye's products to Glen's Gear retail locations for which he agrees to pay the invoiced price. Faye transfers her right to payment under the contract to Haulers Trucking Company. This transfer is a. ​an assignment. b. ​a third party beneficiary contract. c. ​a delegation. d. ​alienation.

a. an assignment

Rachel and Stuart enter into a contract for the sale of Rachel's textbook at the end of the fall semester for which Stuart agrees to pay $75. Rachel wants to transfer her right to payment for the book to Terry. This transfer is a. ​an assignment. b. ​a delegation. c. ​a third-party beneficiary contract. d. ​an alienation.

a. an assignment

App Developers, Inc. (ADI), enters into a contract with Carmen, the chief executive officer of SalesCorp, to create an app for the firm. To fulfill the contract, ADI hires Max and ten other student interns. With respect to the contract, Max is a. ​an incidental beneficiary. b. ​a delegatee. c. ​an intended beneficiary. d. ​an assignee.

a. an incidental beneficiary

Business Loans, LLC, is a creditor beneficiary in a deal that involves Carla's Hair Salon and Dani's Nails. Like most creditor beneficiaries, Business Loans is a. ​an intended beneficiary. b. ​a donee beneficiary. c. ​an original contracting party. d. ​an incidental beneficiary.

a. an intended beneficiary.

Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris. When Kris's schedule conflicts, she contacts Leza, to whom Kris "assigns all rights under the contract." Kris is a. ​liable to Joy if Leza does not perform. b. ​liable to Joy for breach of contract. c. ​liable to Leza for inducing a prohibited contract. d. ​absolved of any liability under the contract.

a. liable to Joy if Leza does not perform

Laramie contracts to provide cattle-herding services to Miles for $1,400 per month. Laramie cannot transfer this duty a. ​without continuing to be potentially liable. b. ​without Miles's consent. c. ​without paying Miles at least one monthly fee. d. ​under any circumstances.

a. without continuing to potentially be liable

Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store, using products from Delta Building Supplies. Refer to Fact Pattern 17-1. Halfway through the project, Four-Square refuses to finish the job. The contract can be enforced against Four-Square by a. ​Ben only. b. ​Ben or Carol's. c. ​none of the choices. d. ​Carol's only.

b. Ben or Carol's

Bea takes out a life insurance policy with Vida Insurance Corporation that names her spouse Wendell as the beneficiary. This is a. ​an assignment. b. ​a third party intended beneficiary contract. c. ​a third party incidental beneficiary contract. d. a delegation.

b. a third party intended beneficiary contract

Marco and Fred enter into a contract for the sale of Marco's apartment for which Fred agrees to pay him $100,000. Marco cannot prohibit Fred from transferring his right to the ownership of the apartment because such a prohibition is a. ​unconscionable. b. ​against public policy. c. ​a crime. d. ​immoral.

b. against public policy

Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store, using products from Delta Building Supplies. Refer to Fact Pattern 17-1. Delta will realize a profit from the sale of products to Four-Square to remodel Carol's store. Delta is a. ​an assignee. b. ​an incidental beneficiary. c. ​a delegatee. d. ​an intended beneficiary.

b. an incidental beneficiary

Eli owes Martin $10,000. Martin assigns the claim to Jack. Jack does not notify Eli of the assignment. A week later, Martin assigns the same claim to Allen. Allen immediately notifies Eli of the assignment. Allen a. ​has priority to payment in all states. b. ​has priority to payment in states that follow the English rule. c. ​does not have priority to payment in any state. d. ​has priority to payment in most states.

b. has priority to payment in states that follow the English Rule

Ian owes Jo $5,000. Jo assigns the right to this payment to Kyle. Notice by Jo to Ian of the assignment a. ​must be given within a reasonable time. b. ​is not required. c. ​must be given within thirty days. d. ​must be given immediately.

b. is not required

Lestor and MaryElise enter into a contract. Lestor agrees to mow MaryElise's yard every week for the summer. MaryElise is a. ​the assignor. b. ​the obligee. c. ​the obligor. d. ​the assignee.

b. obligee

Hilda signs a contract with Indemnity Insurance Company that intentionally confers a benefit on Hilda's daughter Jackie as the designated beneficiary. Jackie's rights under the contract will vest a. ​if she demonstrates her consent to the promise at Hilda's request. b. ​on the occurrence of the event for which the insurance was procured. c. ​if Indemnity attempts to modify the terms of the contract. d. ​automatically.

b. on the occurrence of the event for which the insurance was procured.

John enters into a contract with Katie's Coin-op Laundry to move a suite of dryers from one of Katie's locations to another. John subsequently transfers this duty to Loren. Loren is a. ​an obligor. b. ​an obligee. c. ​a delegatee. d. ​an assignee. Hide Feedback Correct Solution Correct Response c

c. a delegatee

Market Company and Nick enter into a contract for Nick to cut and trim the landscaping around Market's building before a meeting of the company's sales staff. When Nick's schedule conflicts, he asks Otis to do the cutting and trimming. This transfer of duties is a. ​alienation. b. ​a third party beneficiary contract. c. ​a delegation. d. ​an assignment.

c. a delegation

Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment. The contract expressly prohibits any transfer of rights. A contract right may be transferred, however, if the transfer involves a. ​a right whose transfer is otherwise expressly prohibited by statute. b. ​rights under Ivy's insurance policy against Ben's failing to perform. c. ​a right to receive payment. d. ​a right to Ben's services.

c. a right to receive payment

Revenue & Sales Corporation and Software, Inc., enter into a contract for the design of custom software for which Revenue & Sales agrees to pay $64,500. Software transfers the right to payment under the contract to CreditLine LLC. CreditLine is a. ​an assignor. b. ​a delegatee. c. ​an assignee. d. ​a third-party beneficiary.

c. an assignee

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Buns n' Burgers in exchange for her payment of a debt that Lyle owes to New Credit Corporation. New Credit is a. ​an assignor. b. ​an incidental beneficiary. c. ​a delegatee. d. ​an intended beneficiary.

d. an intended beneficiary

Steel, Inc., and Transport Company enter into a contract. UniOil Corporation, which will indirectly benefit from the deal, is prevented from having rights under the contract by the principle of a. ​delegation. b. ​alienation. c. ​privity. d. ​assignment.

c. privity

Ozzie contracts for the sale of 500 shares of stock in Premium Quality, Inc., to Ray, with payment to go to Scholar University to pay Thalia's tuition. The contract reserves to Ozzie and Ray the right to modify its terms. Scholar's right to payment is a. ​terminated by the reservation. b. ​limited only if Thalia agrees to any changes. c. ​subject to any change that Ozzie and Ray make. d. ​not affected by the reservation.

c. subject to any change that Ozzie and Ray make.

Retail Outlets, Inc., contracts with Smooth Paving Inc. to grade and pave a parking lot. Smooth assigns the contract to Tough Road Company, which has a poor record of completing projects. Retail could most successfully argue that the contract cannot be assigned because a. ​Retail did not receive adequate consideration for the assignment. b. ​Retail did not consent to the assignment. c. ​the assignment will materially increase the risk of nonperformance. d. ​Tough Road was not an original party to the deal.

c. the assignment will materially increase the risk of nonperformance

​Gavin takes out an insurance policy on her car. Gavin can assign his policy to a third party a. ​under any circumstances. b. ​if a court approves the assignment. c. ​under no circumstances. d. ​as long as he does so in writing.

c. under no circumstances

Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. Dewey is a. ​an obligee. b. ​an assignee. c. ​a delegator. d. ​a delegatee.

d. a delegatee

D'Alemberte contracts with Elias to render personal nursing services for the benefit of Federica. This is a. ​an alienation. b. ​an assignment. c. ​a delegation. d. ​a third party beneficiary contract.

d. a third party beneficiary contract.

Merry Music Inc. and Nina enter into a contract for Nina to write six songs for which Merry Music agrees to pay her. Nina transfers her right to payment under the contract to Omni Artists Agency. In the transfer of rights, Nina is a. ​a third party beneficiary. b. ​an obligor. c. ​a delegator. d. ​an assignor.

d. an assignor

Paolho and Roth agree that Paolho will fix Roth's boat dock in exchange for $5,000. Paolho spends half of the amount due under the contract to acquire the materials for the job from Sav-U Economy Lumber. Sav-U is a. ​an intended beneficiary. b. ​an assignor. c. ​a delegatee. d. ​an incidental beneficiary.

d. an incidental beneficiary

A contract between Laser Equipment, Inc., and Medical Center contains a clause stating that any assignment is "void." This ordinarily prohibits a. ​only an assignment of contract rights to personal services. b. ​only an assignment that would change the obligor's risk. c. ​no assignment. d. ​any assignment.

d. any assignment

Mai is a third party beneficiary under a contract between Novia and Opie. Novia and Opie can modify or rescind their contract without Mai's consent a. ​after Mai's rights have vested. b. ​at no time. c. ​at any time. d. ​before Mai's rights have vested.

d. before Mia's rights have vested.

Illya owes Jenny $1,000. In a separate deal, Kasey owes Illya $1,000. Illya unconditionally assigns his rights in the deal with Kasey to Jenny. Illya's right to the $1,000 is then a. ​assigned to a court. b. ​unchanged. c. ​extinguished. d. ​incidental.

d. extinguished

​Phillip assigns his rights under a contract with Maria to his college roommate, Owen. Neither Phillip nor Owen notifies Maria of the assignment. The assignment a. ​can be circumvented. b. ​will become effective after thirty days even if no notice is given to Maria. c. ​will not be effective until notice is given to Maria. d. ​is immediately effective.

d. is immediately effective

Pico, a famous chef, agrees to give ten culinary lessons to Rhoda in exchange for $1,200. Pico's attempt to transfer his contract duties to Sven, an unknown sous-chef, will probably be a. ​prohibited because contracts may not be freely delegated. b. ​permitted because the contract is concerned with cookery. c. ​permitted because contracts may be freely delegated. d. ​prohibited if Pico and Sven have different skill levels.

d. prohibited if Pico and Seven have different skill levels.