Cunningham Contracted with the Cougars to Play Professional Basketball

question 37

Multiple Choice

Cunningham contracted with the Cougars to play professional basketball.The Cougars at the time were owned by the Southern Sports Corporation.Which of the following statements is true?

• A) The Cougars could assign their right to have Cunningham play to its successor corporation, the SlamDunk Corporation, and delegate their duty to pay him as well.
• B) Cunningham could assign his right to payment to the Special Olympics and delegate his duty to play to Herb "Shorty" McGee.
• C) The Cougars could not assign their right to have Cunningham play to another club or delegate the duty to pay his salary, because the common law absolutely prohibits the assignment of rights and the delegation of duties.
• D) All of the above are correct.

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Definitions:

Collection of Payments

The process of gathering all monetary amounts owed to an individual or organization by its debtors or customers.

DRIP Payments

Dividend Reinvestment Plan payments, where dividends paid by a corporation are automatically reinvested to purchase more shares of the company's stock.

EOQ

Economic Order Quantity; the ideal order quantity a company should purchase to minimize its total costs related to ordering, receiving, and holding inventory.

Ordering Costs

Expenses incurred in placing and receiving orders from suppliers, including costs related to order processing and transportation.