The Statement That an Assignee "Takes Subject to the Equities

question 51

Multiple Choice

The statement that an assignee "takes subject to the equities" between the parties means that

• A)for the assignment to be enforced it must be an equitable assignment.
• B)the assignee gets no greater rights against the debtor/promisor than the assignor had.
• C)the debtor/promisor can enforce any rights it has against the assignor against the assignee.
• D)the court must decide whether it is fairer for the assignor or the assignee to be paid under the assignment.
• E)before an assignee can enforce an assignment against the debtor/promisor it must demonstrate fairness.

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Definitions:

Marginal Cost

The expense associated with manufacturing an extra unit of a product or service.

Average Fixed Cost

is calculated by dividing the total fixed costs of production by the quantity of output produced, showing the cost per unit of output.

Total Variable Cost

The sum of all variable expenses related to the production of goods or services, which vary with the level of output.

Total Cost

The sum of all costs incurred by a business in producing a certain quantity of a good or service.