Question 1

Article 9 of the UCC makes waiver-of-defense clauses effective against assignees in consumer transactions.

Accepted Answer

A) True 
 B)False

Question 2

Carl, a contractor, and Lyle, a landowner, have a contract whereby Carl is to perform routine construction services according to the blueprints that Lyle has provided. Carl assigns the contract to David, a developer. As a result of this assignment:

Accepted Answer

A)  Lyle can bring suit based upon detrimental reliance. 
B)  Carl has no more rights or responsibilities with regard to the contract. 
C)  Carl no longer has any rights under the contract, but he remains responsible for the duties he agreed to perform. 
D)  Carl has all of his rights under the contract, but he has no responsibility for the performance of the duties. 
A)  Lyle can bring suit based upon detrimental reliance. 
B)  Carl has no more rights or responsibilities with regard to the contract. 
C)  Carl no longer has any rights under the contract, but he remains responsible for the duties he agreed to perform. 
D)  Carl has all of his rights under the contract, but he has no responsibility for the performance of the duties.

Question 3

UCC Article 9 requires certain assignments to be in writing.

Accepted Answer

A) True 
 B)False

Question 4

Theresa has a contract to teach eighth grade at Washington Middle School. She decided she could make more money writing a book, so she wants to assign her teaching contract to her friend, Stephanie, who is also a licensed teacher.

Accepted Answer

A)  If effective, this would be both an assignment and a delegation. 
B)  The duties which Theresa wants to delegate are personal in nature. 
C)  If the school district agrees to accept Stephanie's services, a novation would occur, which would relieve Theresa of her obligation to the school district. 
D)  All of these are correct. 
A)  If effective, this would be both an assignment and a delegation. 
B)  The duties which Theresa wants to delegate are personal in nature. 
C)  If the school district agrees to accept Stephanie's services, a novation would occur, which would relieve Theresa of her obligation to the school district. 
D)  All of these are correct.

Question 5

Which of the following involves a creditor beneficiary relationship?

Accepted Answer

A)  A contract where the insured names a bank with which he has a loan as the beneficiary of a life insurance policy. 
B)  A contract between an employer and a union representing the employees which is made for the benefit of the employees. 
C)  A contract between the owner of a building and the contractor stating that the contractor will pay the contractor's employees at a stated rate. 
D)  A contract between a governmental unit and business for services to be rendered to area citizens. 
A)  A contract where the insured names a bank with which he has a loan as the beneficiary of a life insurance policy. 
B)  A contract between an employer and a union representing the employees which is made for the benefit of the employees. 
C)  A contract between the owner of a building and the contractor stating that the contractor will pay the contractor's employees at a stated rate. 
D)  A contract between a governmental unit and business for services to be rendered to area citizens.

Exam 16: Third Parties to Contracts

Article 9 of the UCC makes waiver-of-defense clauses effective against assignees in consumer transactions.

Carl, a contractor, and Lyle, a landowner, have a contract whereby Carl is to perform routine construction services according to the blueprints that Lyle has provided. Carl assigns the contract to David, a developer. As a result of this assignment:

UCC Article 9 requires certain assignments to be in writing.

Theresa has a contract to teach eighth grade at Washington Middle School. She decided she could make more money writing a book, so she wants to assign her teaching contract to her friend, Stephanie, who is also a licensed teacher.

Which of the following involves a creditor beneficiary relationship?

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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