Adam Bought a Boat from Charlie for $900 Payable on November

question 27

Multiple Choice

Adam bought a boat from Charlie for $900 payable on November 6. On November 6, when Charlie came for the money, Adam didn't have it. Adam was, however, employed by Ms. Bey to do some market research. He was to be paid $1000 for his report, due on November 12. Charlie wanted an assignment of $900 of the amount Adam expected to receive November 12. Adam wrote out an assignment with all the essential information and signed it. Charlie gave written notice of the assignment with all pertinent information to Ms. Bey the next day, November 7. On November 12, Adam had not finished his report. The contract provided that he would lose $100 for every week he was late. Adam was two weeks late in submitting his report. Which of the following is true?

• A) The assignment fails to be an assignment at all because Adam failed to get the consent of Ms. Bey.
• B) This assignment is a statutory assignment.
• C) Ms. Bey must honour the notice of assignment by paying out the $900 on the day the notice was received.
• D) Charlie, the assignee, would receive $800 from Ms. Bey and have to look to Adam for the other $100 owed.
• E) Charlie would get nothing because Ms. Bey owed less than the amount assigned.

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Definitions:

Revenue Rulings

Official interpretations of tax laws issued by the Internal Revenue Service that guide taxpayers in compliance.

Revenue Procedures

Official statements published by the IRS that outline procedures, practices, and administrative aspects of tax law to guide taxpayers.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), often expressed as a percentage.

LMX

Leader-Member Exchange theory, which focuses on the two-way relationship (dyadic relationships) between supervisors and subordinates.